It is a curious fact: many of the most successful Forex traders are professionals in mental science, but not in economics. It is a key to your success too – you will start to make money trading Forex when you understand the whole processes occurring in this area. If you will comprehend the reasons of mistakes you have done earlier and correct them you can see the path to huge incomes through psychological obstructions.
So what is the advantage of guru in psychology compared with economist in case of Forex trading?
The problems of economists are:
- the fact that currency rates are not always depend on the economic situation in the country. Can you imagine an economist who will sell short amid positive production data? Or the one who assume that technical analysis of currency pairs is more significant for Forex trading than the fundamental one? Every economist is sure of his knowledge and this is the point. Undoubtedly the currency changes under the influence of the economic statistics in the country, but nobody knows definitely when and how.
- the shortage of competence in psychology that helps to grasp the actions of the crowd.
In such circumstances, it seems logical to read Forex books, which contain different solutions for psychological troubles experienced by the traders. But there is one problem related to these books: neither of them really help trader to overcome the fears connected with the trading.
It all depends on your own desire.
It is obvious that judicious trader should devote a lot of time to perfect his skills of psychological control during the trading. The only way of managing human feelings is to exclude them from the mind during the trade processing. Prices change in accordance with emotional impulses in the short term, and economic data in long periods. But they can only be estimated by logic, as that is the main instrument possessed by human beings.
What conclusion can we do?
You can not rely on one economic theory only and there is no place for emotions in a successful Forex trading. If you will find the golden mean you ensure yourself a steady income.