Trade Forex Trading

Psychology of Market

The reason why 90% of traders lose can be summed up with two words:

XAUUSD Psychology

Many people fail on the psychology front and only a few take the time to transform their mindset. The reason why most people make losses isn't that they can not beat the market, but because they don't have the right mindset. XAUUSD psychology is all about transforming your mindset.

In XAUUSD, you must first master your method & then put in many hours of studying how the market works.

The market is too complex and there are many factors which have a huge impact on the daily fluctuation of market prices. Traders should understand how the online market works through studying trend characteristics & also how these fluctuations happen.

Psychology and Emotions

When it comes to the market, winning is a matter of the mind. Studying the psychology of the market takes into account what influences others - including the mass psychology of the people that trade on a daily basis. Anything involving winning or losing large sums of money becomes emotionally charged. Winning depends on knowing your own mind & also understanding how mass psychology moves the prices.

In most cases when traders invest in a instrument, they invest more than just money - they make an emotional investment. This is where most go wrong; being right becomes more important than making money. When the transaction goes wrong since they have already made an emotional investment they let their decisions to be ruled by their emotions and they hold onto their losing trades in the hope that it will bounce back. Unfortunately their losses become greater and they find it even more difficult to close their trade orders.

Even when traders make money and let their emotions get in the way, they either become greedy or overtrade.

XAUUSD psychology will form a good foundation for trading profitably - it's about learning how to keep emotions out of the picture, and not to letting these emotions influence your trade transaction decisions - trader behavior changes very little with time, as humans will always make the same mistakes over & over again.

You can learn how to control the 3 most dangerous emotions that tend to cloud judgment and cost you profits. These 3 emotions include:

  • Greed

  • Fear

  • Hope

6 Tips for Transforming Your Trading Mindset

1. Define your goal.

There are many important XAUUSD questions that you need to answer before jumping into the xauusd market. Making & defining agoal will give you a start point to your success.

2. Keep it simple.

Some people use more than 5 indicators on one chart analyze & to inform them of their next move with no success or even breaking even. Thing is that more indicators do not equal more accuracy.

The three most powerful tools to use are:

  1. Candlesticks (buyer and sellers behavior),
  2. Price action (such as support & resistances), and
  3. Trendline (up, sideways or down).

3. Don't get emotional.

If you're attaching emotions to your gold trades because there is real cash involved you need to change your mindset & start following your plan. If you're a beginner with no previous experience always start with training & learn until you start making profits on you XAUUSD practice trade account before investing your capital.

4. Nothing wrong with breaking even.

Not all your trades are going to be winners. It is better to break even than to lose. If you know that a transaction has turned against you do not start praying for a miracle hoping for the market trend to reverse instead cut your loss and move on. There are endless profitable trading opportunities.

5. Speculation is your worst and biggest enemy.

Don't speculate on where a instrument maybe heading. Always use your gold charts and your trade plan & study the trend before opening a trade transaction. The trend is your friend, so make good use of the trend by following the price charts.

6. Don't allow your winning orders to turn against you.

If you have an open winning transaction at hand do not allow it to turn against you. It is better to place a stop 5 pips above the entry opening point & breakeven/or win little than to let it turn into a loss.

For how to use these market tips look at the XAUUSD plan guide: the section about this is illustrated below.

XAUUSD Psychology and Risk Management Tutorial - XAUUSD Psychology Course

Psychology Section on XAUUSD Plan

Learn More Tutorials & Courses:

Forex Market Traders Seminar Gala

Forex Market Traders Seminar

XAUUSD Broker