JoshMany people want to know if they should trade like emotionless animal or machines in this industry. This question does not surprise us when we hear it because we often tell the traders it is their emotion that should be blamed for losing the money. If you want to improve your trading career, you should know it is not possible without reducing your emotions in the trades. You cannot get excited nor can you get sad when you lose money. You have to accept the loss like a machine and this is how you can get success in this currency trading. Does that mean humans have to be a machine to get on top the industry? Should they trade like machines? This article will answer all your questions and you will know what the best is for you.
Those who are successful in forex market have some unique characteristics trait. They never trade the market with other people opinion. In fact, they have complete control over their emotions. To earn money from this industry you have to educate yourself with the proper knowledge of trading. Learn about the three major types of market analysis. The new traders should always use the demo trading account to understand the nature of this market. If you start risking your real money in the learning stage it’s very obvious you will become emotions. You have to consider the human emotions while trading the market. If you lose control over your emotions it won’t take much time to lose your investment. Focus on rational logic and trade the higher time frame with managed risk. Never risk any amount which you can’t lose comfortably.
Machines only analyze based on some predetermined trends
One of the limitations of machines is they only analyze the market based on some fixed trends that were predetermined in their systems. If machines are so successful, why the trading bots aren’t used in the industry? Why can these forex trading bots not automate the trading? It is the answer because they do not have the mind like humans to think and adapt to the changing trends. The trends can change anytime, with or without notice. It is not possible for the machines to predict it all the time. Just have a look at the professional traders at Juno market. They always consider the probability factors of this market. Regardless of the quality of their trade setup, they never take any unnecessary risk.
Emotions can be your advantage if you know how to use them in your trading
The human traders, with their emotions and experiences, can sense beforehand when there is going to be a change in the trend. One cannot be superior in all the way as humans have got their emotions that let down sometimes. You should not feel weak as it is also your biggest advantage over machines. When professional traders say machines, they do not refer to completely machines that do not have mind and heart. They only use it to keep our emotions out of the trades. If you can control your emotions, like you have lost your money and you are calm, you can use your strategy and analyze to know what your mistakes were and try to improve the next trade. If you cannot control the emotions, you will try to avenge and place trades with big leverages to cover the losses. This is very natural in this currency trading and many traders lost their investment in this way.
Trade like a half machine and half human
The best way to trade in this industry is like a half machine and half human. In this way, you can control your emotions and also you can use your analyses to predict the market trend. Sometimes the analyses are not all the thing that you use but also your mind to see the obvious trends.