This article looks at the controlling of your emotions on the foreign exchange Singapore.
When you trade on the foreign exchange Singapore you need to know how to control your emotions. If you do not know how to control your emotions then you will not be able to avoid emotional trades and the losses that come from them. There are a number of steps that you should take when you look at controlling your emotions. These steps include the indentifying the emotions that you have, knowing what caused them, having a trading plan and dealing with losses.
The Identification of Foreign Exchange Singapore Emotions
There are a number of emotions that you can face on the foreign exchange Singapore. It is important that you are able to determine and identify the emotions that you are going to face at different times when you trade. There are certain times when certain emotions will be commonly felt.
The first time is when you start trading and the emotion you will feel is fear. If you have a winning trade then you are generally going to be faced with greed. Losing trades will bring fear, anxiety and the need for revenge.
Knowing What Causes Your Emotions
There are some traders who try and close themselves off to the emotions that they feel on the market. These traders believe that the best way to control your emotions is to ignore them. This is actually a very bad way to control your emotions because eventually you will not be able to ignore them anymore. When this happens you are going to trade emotionally and this could lead to major losses.
When you know what the cause of your emotions is then you can work at limiting the impact of the emotions. By knowing what the cause is you will be able to place controls that help you overcome the emotions that you are feeling. If your emotions are brought on by the use of capital that you cannot afford to lose then you know that you should stop trading until you can use capital that you can afford to lose.
Having a Trading Plan
One of the best ways to control your emotions is to have a trading plan that you stick to. When you have a trading plan you are going to have rules that you trade by. The trading plan that you have should be one that you are comfortable with and that you have tested. When you know that the plan is profitable you are more likely to stick to it. By sticking to the trading plan that you have you will be able to avoid emotions on the market.
Being Able to Deal with Loss
Losses on the market are among the primary reasons why traders turn to their emotions. If you are not able to handle the losses that you face then you will not be able to rationally deal with the aftermath. You have to accept that you are going to make a loss at some point on the market. When you accept this you are going to be able to handle the losses that come your way without turning to emotional trading.