You will learn about the following concepts
- Why is psychology important
- The process of becoming an accomplished trader
- Market sentiment and crowd behavior
- Recency bias
Welcome to the fourth chapter of Trading Pedia’s Forex Academy. Here we discuss the psychological side of trading, which along with money management are two highly underestimated topics often being the difference between an experienced trader and a beginner.
Many investors quickly come to acknowledge that despite being familiar with winning strategies, systems, and money management techniques, trading success is dependent on ones psychological state of mind. If you’re a trader who just starts out, where would you find the initial confidence to pull the trigger? How do you deal with the down times without digging yourself deeper into the hole? If you are in a hole, how do you work your way back out? How do experienced traders push through the ceiling of profitability that caps their initial trading for years?
The following articles aim to make you familiar with the possible emotions you may encounter during trading and how to deal with them. You will learn about market sentiment and crowd behavior, more specifically how to read them. You are welcome to start with this chapter.