I’m going to show you how controlling emotional forex trading is important. I think the best way to really control it, is to understand the emotional pressures that you’ll experience while you’re trading forex. When you can identify it, you can logically bypass the emotion. It may not be easy, but it’s something that you can work on.

The most obvious emotional state you can have is the worried or the optimist. Worried is pretty obvious. You put your money into the market and you’re having an anxiety attack every time it makes a move. The problem here is that you’re more likely to cut and run before you ever give the trade a chance. The optimist is the over confident one. They see the trade going down, but they assume it’ll all play out for the best. That’s fine when you first make the trade, but there’s a point where you just need to cut your losses.

I’ve bet you’ve had some very convincing gut feelings about certain trades that you are sure will be profitable. Gut feelings are an emotional response to our instinct as human beings. They’re designed to help us survive, but when you’re trading forex it is sort of an inappropriate type of thing to listen to. When you’re feeling that gut feeling, you always think about the positive outcomes of following past gut feelings. The problem is that you never really think of all the times it goes wrong. Never make a decision on a gut feeling. Always crunch the numbers and do an analysis. Make the move on those numbers. It’s fine to investigate gut feelings, but never go on them alone.