Vicious Circles in Forex Trading

Ever since time is immemorial, we humans are obsessed by the circle. The invention of the wheel is undoubtedly the most important practical application, but also plays this mystical angle circle without the end and without beginning a major role.

First a description of the circle in which 90% of the traders are ultimately be trapped. Most traders start enthusiastically as "Newbie" and quickly purchase a trading platform with trading bots, bells and whistles. This often works well for a while, until the revolution comes and the successes shrivel like a raisin. The next phase, the emotions will play first and skip the panic. This manifests itself in emotional and often act in scalping.

The trader will look for new systems, gurus and strategies. Unfortunately, this success is often short lived. The earnings were down and maybe even harder than the first time. The panic then, but luckily the trader in this phase is often increased by the experience a little more insight into their psyche and know this nice control. The end result is again the same. An inflated account and a frustrated trader who, or drop the towel roll, or is back to square.

A dentist has four years of study before his first patient may help. Traders often think a few weeks to have found the Holy Grail and fully trained. Would you let your teeth treated by a dentist who has only a few weeks in working with the theory?

The general emotional behavior among fresh traders is finding a good operating system and smart strategy. Difference is that the traders now can rely on dealing with loss, emotional behavior, along with the ultimate result that every time the circle is taken over the merits and thus increase the vicious circle slowly by changing into an upward spiral.