Psychological factor of Forex trading: keep from losing

April 21st, 2010

Starting to work professionally on Forex market every trader realizes that except a knowledge of successful strategies, systems and methods of capital managing, Forex prosperity depends on psychological state.

Being a novice at Forex, where would you take the confidence in the conducted operations from? What are you doing if you have accomplished the unlucky deal in order not to get into bigger debts? If you are in minuses, what measures do you take to return to positive results?

First of all, trading is a discipline devoted to effective ways of getting profit. The inner state influences greatly on the ability of a trader to estimate correctly chances in a certain situation.

After a trader has changed from a demo-account to a real trading account his results become much weaker. What does it depend on? Operating with the same quotes in the same trend, though the outcome appears different. Why? Everything is caused by a psychological condition. Simply, working with own money a trader is governed by personal feelings of fear and greed, which, besides, are market moving power. Panic on the currency market leads to fluctuations of the currency rates and often this motion does not reflect real process in the global economy.

How can you refrain from the impact of emotions conducting operations on Forex? You only need to master the discipline of trading procedures. As only an organized trader is able to work at the market for the time required to achieve certain goals. It is a discipline which does not allow a trader yield to market influence and leave the market in haste.

There are numerous ways how to strengthen the discipline of a trader. The important factor is working hours’ regularity, the choice of time period for working with an account of individual features of a trader. But the most suitable method is usage of a tested trading system.

Nevertheless, abiding the trading system signals is also not an easy thing. To do this, it is necessary to comprehend that there will be thousands of favourable situations for entering the market. Many traders are eager to enter the market as soon as possible; or vice versa, enter it too late, which in both cases can cause losses and correspondingly, a nervous strain. Working at currency market is extremely complicated, mostly because many negative factors affect the trader’s psychological condition.

You can be surprised, but gaining a considerable sum of money also has a negative effect on the trader’s form. In this situation a trader can start overestimating his abilities and lose concentration.  If a trader tends not to a quick profit, but acts tactically regulated, driving his average monthly earnings to a particular level, this is sure to decrease a psychological pressure of every conducted deal.

Added by Roman Tsepelev,
InstaForex development manager

Revisiting the major issue: How to quit your fears?

April 14th, 2010

A significant number of people not engaged in Forex international currency market believe currency speculations to be an easy occupation. While for a successful work at trading platforms a strong will, self-restrain and responsibility are required. You should always follow the market behaviour, be extremely attentive and concentrated.

Everyone who has shifted from a demo-account where he was managing virtual millions and became confident of his skills, to a real account working with own money, is sooner or later overwhelmed by fears of making a mistake and plunging his capital.

The condition of being in panic is typical of not only beginning traders, experienced traders are as much exposed to attacks of cowardice inculcated by the inner voice. Here, a question arises: how are the deals conducted if traders are afraid? They say: what the eyes fear, the hands do. But you should not take this proverb as an instruction. Instead of neglecting the existing problem it is better to examine it and to solve it. Here are a few recommendations of overcoming your fears of trading at Forex.

First of all, learn to control your emotions: they should not stand in your way to take reasonable decisions. Working at Forex involves a strong psychological pressure on a trader, that is exactly why not everybody is able to remain on Forex and trade successfully. Emotions influence absolutely on each participant of currency trading to such great extent, that if one does not learn to control himself, it will inevitably lead to significant losses, financial as well as moral.

Make an effort to trade estranged and maximally unemotional. Plenty of novices and losing traders consider that the already tested trading strategy is sure to bring profit at market. Though, this is a total misbelief. The most difficult work which is a recipe for success at market includes developing one’s own trading system, fitting all needs and principles of every trader’s work.

The trader’s liveliest fear is the fear to lose all money. To get rid of this phobia you should try to change attitude to this fear. Make yourself think about positive result by autosuggestion, persuasion, meditation – just as you like! Executing an operation it is necessary to learn acting under the influence of the positive psychological mood and not to allow the fear to doom you to failure.

Be maximally sequential, otherwise you are likely to lose. Do not undertake hasty and unreasonable actions. The deal must be scrupulously planned and the result must be foreseen with a probability of 99%. And, it must be your own viewpoint, but not blind faith to “forecast” of a dilettante from Forex forum or analytical article even written by the most professional expert (he/she is a human being and has unlucky days, and can makes mistakes).

And the last thing: daily improve yourself and bring the skills to perfection. The confidence will come with an experience and a skilled hand. The confident person has nothing to worry about, as the luck is always in his/her pocket.

A trader should believe in that he/she will make profit as a result of the trading. Absolutely every speculator can become a successful trader. If you are in positive mood, have a passion for trading and you will completely realize the responsibility for taken operations during the trading, no doubts it will make you more than a successful trader on Forex international currency market, ready to any obstacles on your bumpy road to a Million!

Added by Tatyana Makhina,
InstaForex Clients’ relationship manager

What for is Forex news feed needed?

March 31st, 2010

Forex news feed is one of the most important elements of the international currency market Forex. In point of fact, the currency market Forex exists due to the informative backup, consequently, Forex news feed is the integral part of the Forex market functioning.

Forex news feed represents the information sampling from the variety of news received from all over the world. These financial information in one way or another affects the functioning of the currency market Forex and its users – traders. Besides, nothing can effectively function for a long time amid complete lack of information that is why Forex news feed is very important part for the trading at Forex market.

The whole functioning area of the buying and selling the world currency at the international Forex market is determined by the Forex news feed. Traders at settlement of transaction follow only received information data. One of the major functions of the Forex news feed is the development of the necessary information base for the professional participants.

Forex news feed consists in the surveys of major economic news of different countries, which in any way influence the activity at Forex market. Also Forex news feed includes the main changes of the world factors, which affect the currencies quotations, which are traded at Forex.

Due to the continuous data flow the international currency market is constantly moving, increasing or declining its intensity and number of deals, and the base of these data is Forex news feed. All mentioned above can lead to a conclusion that Forex news feed is the information foundation of the international currency market Forex.

Added by Andrey Misyuk,
InstaForex Clients’ relationship manager

Have you made a lot of posts? Get a lot of money!

March 26th, 2010
InstaForex Company in cooperation with the administration of forexfox.nl portal has summarized the results of a contest, which started on Feb. 15, 2010. In accordance with the rules of the contest, each user of forexfox.nl forum  could get from 50 to 350 Euros for their posts. The lucky winners of prizes were 8 members of the forum who have shown themselves as the most active members of the Forex community.
Places were allocated as follows:

1st Place – Marple (350 Euro)
2nd Place – Mr.Eden (300 Euro)
3rd Place – Zoltar (250 Euro)
4th Place – Vivalatip (200 Euro)
5th Place – Danny (150 Euro)
6th Place – Thierry (125 Euro)

Prizes will be credited automatically to the trading accounts of the winners in InstaForex Company. We are pleased to congratulate all winners of this wonderful contest, and wish them a successful trade and big profits!

Added by Kirill Kuznetsov,
InstaForex PR-manager

Miss Insta Asia: the secrets of beauty and success

March 25th, 2010

Dear blog readers,

This time we would like to introduce one of the pretenders to “Miss Insta Asia” title, a participant of InstaForex beauty contest, a real Asian beauty and just a simple young girl – Siti Maryam Idris. She is a student from Kuala Lumpur (Malaysia) and very intelligent person. How is she related to Forex world, and who compelled her to take part in the contest – that’s what she will tell us in her interview to “Miss Insta Asia” Administration.

siti maryam

IFX: Hello dear Siti Maryam.What do you do in your life? What are your hobbies and interests?

SM: Right now I’m working as Administration at private company in Kuala Lumpur, Malaysia. In the same time I’m persuading my degree in Software Engineering at University Technology of Malaysia. I like outdoor activities like camping, jungle tracking, travelling and more. Like most women my interest are mainly in healthcare and music.

IFX: As you have written in your profile, you are taking “Software Engineering” course. But how are you related to Forex? Are you a trader? Share your experience and impression of trading.

SM: Forex and Software are two difference fields, but I don’t see this is a barrier for me to get involved in both worlds. Some of my knowledge in Software engineering could be applies in Forex indirectly- you have to be discipline, critically and analytically in both fields.

I’m not a trader as I’m very fresh in this field, but I’m exposed by the environment of trading as I’m surrounded by family members who are successful traders

IFX: For how long have you learned about Forex?

SM: I’m newbie in Forex, I just learn about Forex since I’m working in Forex Company.

IFX: Is currency trading serious and respectable work? Why?

SM: Yes, because it requires experience, money management, discipline, trading psychology, mental strategies and more, which are not everybody have and the only strong can excel with this job.

IFX: Do you earn enough and stably at Forex? Or is it just a hobby and additional source of revenue?

SM: As I’ve mentioned, I’m not a trader yet, however from my experience with traders around me, I can say that they earn well.

IFX: Do you think trading is just male profession? Or women can also approve themselves in this field? What qualities do help them to trade?

SM: When it comes to money management it should be no boundary between male and female, both genders have the equal opportunity to excel in this field. What important is these qualities: experience, money management, discipline, trading psychology and mental strategies.

IFX: How did you learn about InstaForex Company?

SM: InstaForex Company is my principal employer. I’m glad to work/learn with InstaForex Company.

IFX: What did compel you to register in the contest?

SM: Encouragement from my colleagues and also as a form of support to my company.

IFX: Is it your first experience of participating in the beauty contests?

SM: Yes, this is my first time.

IFX: By the current rating, you are among the first five leaders. How do you appraise your chances to win?

SM: I never put any high hope at all, instead I’m very surprised I could reach this level and thank you in advance to all the voters.

IFX: Which of your personal qualities do your friends appreciate?

SM: Honesty, sincere and trustworthy.

IFX: What are the secrets of your beauty and charm?

SM: For me the beauty comes from inside -behavior, honesty and self belief-

IFX: What helps you to make a decision: good sense or intuition?

SM: Both are relevant depend on situation, sometimes it needs a good sense and sometimes intuition works.

IFX: You wrote you were proud to be Asian. What distinguishes Asian girls from other nations?

SM: A typical Asian upbringing engenders its women with the importance of manners and respect for others. Asian girl are gentle and polite, they are typically very attractive physically and intelligent. Asian girls have many qualities ensuring that they are constantly respectable. I‘m not saying the western girls do not possess these qualities, but in many ways I’m proud to be an Asian young lady.

IFX: What is your the most dearest wish for today?

SM: Don’t wish it was easier, wish you were better. Don’t wish for less problems, wish for more skills. Don’t wish for less challenge, wish for more wisdom.

IFX: Thank you so much for your answers and time. We wish you good luck in the contest and great achievements in your life and study!

The interview was obtained by Ekaterina Abramova ,
InstaForex PR-manager

To learn more about the contest and its participants you can visit the website: miss-instaforex-asia.com.