{"id":12902,"date":"2015-02-11T10:12:14","date_gmt":"2015-02-11T10:12:14","guid":{"rendered":"http:\/\/www.icmarkets.com\/blog\/?page_id=12902"},"modified":"2015-02-14T06:33:41","modified_gmt":"2015-02-14T06:33:41","slug":"trading-psychology-101-index","status":"publish","type":"page","link":"https:\/\/www.ic.com\/blog\/trading-psychology-101-index\/","title":{"rendered":"Trading Psychology 101"},"content":{"rendered":"

Now that you\u2019ve studied the basics of technical and fundamental analysis, as well as the importance of proper risk management techniques, it\u2019s about time to take a look at another crucial component of forex success: trading psychology.<\/p>\n

While the basic forex concepts allow you to spot profitable trade setups and risk management<\/a> enables you to limit your exposure or maximize your gains, trading psychology ensures that you maintain the right mindset during a trade and throughout your trading career.<\/p>\n

Trading psychology allows you to stay focused even in the middle of a long losing streak and gives you confidence to bounce back from a large drawdown. It enables you to keep a clear head and manage your expectations when you\u2019re having a good run. This is what separates seasoned trading pros from beginners, as proper trading psychology makes you focus on the process and not the profits.<\/p>\n

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\n<\/a> As with professional athletes that also have a sports psychology mentor that helps them keep their head in the game, traders also need guidance when it comes to having the right frame of mind, especially during ever-changing market situations. In a fast-paced trading environment, one can easily get distracted or stressed in trying to make money, but trading psychology ensures that one is focused on staying disciplined or keeping a level head.<\/p>\n

With the right trading psychology, one can be able to step back and take a look at the bigger picture of one\u2019s trading endeavor instead of zooming in to winners or losers. Too often, a losing trade can dampen one\u2019s confidence and destroy one\u2019s focus for the next trade setups. Similarly, a winning streak can lead to overconfidence and also ruin one\u2019s focus moving forward.<\/p>\n

What\u2019s interesting about trading psychology is that it is a constant learning experience. While mastery of basic forex techniques such as market analysis or building on winning positions is possible, trading psychology takes a long time to master and even the best traders out there do need a little guidance every now and then.<\/p>\n

It doesn\u2019t matter at what stage you are in your trading career. Even if you\u2019re a beginner just learning the ropes or an expert trader managing multiple trade positions, one\u2019s trading performance and overall well-being could benefit from trading psychology tips.<\/p>\n

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Now that you\u2019ve studied the basics of technical and fundamental analysis, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-12902","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/www.ic.com\/blog\/wp-json\/wp\/v2\/pages\/12902","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ic.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.ic.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.ic.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ic.com\/blog\/wp-json\/wp\/v2\/comments?post=12902"}],"version-history":[{"count":3,"href":"https:\/\/www.ic.com\/blog\/wp-json\/wp\/v2\/pages\/12902\/revisions"}],"predecessor-version":[{"id":12961,"href":"https:\/\/www.ic.com\/blog\/wp-json\/wp\/v2\/pages\/12902\/revisions\/12961"}],"wp:attachment":[{"href":"https:\/\/www.ic.com\/blog\/wp-json\/wp\/v2\/media?parent=12902"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}