Risks from Forex Trading Based on Dr. Brett Steembargey
Forex trading certainly has risks for every trader. But regardless of the forex trading results obtained, there are some psychological risks that are less closely watched by forex traders. Dr. Brett Steembargey, a trading psychologist writes down some of the risks that can be experienced by traders.
Risk of facing boredom
Many people are interested in forex trading because the prospect of earning big income in a relatively short time. This makes forex traders try to get the most suitable trading system. But often market price movements do not respond to the system and traders must patiently wait for forex trading signals. If the forex trader is impatient, he will quickly feel bored and try to change the trading system. In fact, he often forces himself to enter the market which can adversely affect him.
To keep the risk of that facing boredom, forex traders do not have to change trading systems or force themselves to enter the market. It is best to take a break to monitor the market, maybe you can visit forums about trading or read news about the market.
We are normally always worried about the result of a buildup of losses or losses in a row. But did you know that you will also face risks when your trading account balance rises quickly due to ‘profit accumulation’? True, traders will face the risk of getting successive forex profits.
They increase position size to a level that is difficult to control. Not a few forex traders deviate from trading plans and trade as much as possible. This can be fatal because the forex trader can no longer control his emotions. A forex trader must always stick to a trading plan and be able to maintain his emotions.
Risk due to successive events.
No matter how good you are in managing your trading and trading systems the consequent ones generate profits. You will never know later that you will face consecutive profits or consecutive losses.
Successive profits can be risky, ‘profit buildup’, but successive losses can also lead to deviating forex traders. Yes, of course it deviates from the trading plan and makes bad decisions. If you see your forex trading account balance in a row go up and then go down again in a row. This indicates that there is no significant progress, and can affect the decline in your motivation in forex trading.
To go beyond the psychological risk, forex traders can apply trading journals that are always updated. Of course so that forex traders can see the development of their trading results from time to time with their advantages and disadvantages. This psychological risk is very important, especially for those who make forex trading as their main job.