Forex Supply and Demand: Refreshment - ForeXposed


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Monday, February 20, 2017

Forex Supply and Demand: Refreshment

Market dynamics is the result of mass psychology. We are able to make money for being able to master this aspect.
As is already well known, that 90% of trading is a mental problem. Winning is determined by how you prepare mentally than techniques / styles of trading. Understanding how other people think and make decisions is more important than understanding the chart.

If you still encounter obstacles in forex trading, it might be time for you to change the focus of attention. Rather than just manipulating trading technique, will be better if you focus on its main cause factor.

There are some very clear differences between winning trader and losing trader.

Forex Supply and Demand: Refreshment

Novice Trader

  1. Tend to follow the crowd/mass (crowd follower).

  • Follow what others do.

  • Feeling comfortable if his decision is the same as the crowd.

  1. Avoid the risk unless other people also picked it up.

  1. Thinking, if others "Buy" then if he doing the same will be secured.

  1. Acting on advice from others who are considered "expert".

  1. Tend to make the trading process becomes complicated and ignore the simplicity of the market.

  1. Always make the same mistake: "Buy/Sell" when the price has moved away significantly (high risk). “Buy” when the price is approaching resistance and “Sell” when the price is approaching support (low probability).

Pro Trader

  1. Take the initiative (lead the crowd).

  1. Eliminate all subjective noise that is blocking the decision-making process. They don't care about what others have done, and make decisions based on a set of rules that are very mechanical and not carried by emotions.

  1. They learn to identify the correct entry (proper entry) which most people are not noticing it.

  1. They "Sell" after a period of "Buy" running approach/entrance the area of resistance. They sell a "Greed".

  1. They "Buy" after a period of "Sell" running approach/entrance the area of support. They bought "Fear".

Successful Trader:

  • Can identify opportunities before anyone else did.

  • Execute trading mechanically.

A mental character that must be owned by a forex trader:

  • Confidence.

  • Discipline.

  • Patient.

1 comment:

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