What you see is what you trade in forex, not what you think
You may have heard as a forex trader that you should curb your emotions and focus on logic and objectivity rather than succumb to the cravings of greed, hope and fear. But knowing that a forex trader shouldn’t trade with emotion is one thing; Knowing how not to trade Forex emotionally and how to put this information into practice is another matter entirely.
The brain’s primitive fight-or-flight responses that have guided our existence as a species for thousands of years have made the human brain primed to act against us in the Forex market. Unfortunately, these same mechanisms prevent most
Forex traders can maximize success in the market. Therefore, in order to develop a plan that uses the most rational and objective frontal lobe area of the brain, which is the newest area of the human brain and allows it to plan, reason and understand complex ideas in Forex trading, it is important to become a consistently winning Forex trader.
We may make sure that we act on reason and objectivity rather than emotion by learning to trade what we see rather than what we think in the Forex market. You can get some sound understanding and advice from the following points so that you can more clearly understand the reasons for trading what you see not just what you think and how to make sure you do it right
Stop trying to get smart in the forex market
In the same way that you gamble with your money in a slot machine or on the roulette wheel, trying to predict what the market will do next without any strong rationale or forex trading setup is risky. But both novice traders and failed forex traders make this mistake of emotional trading every day.
Many traders are showing some ideas of what price to do rather than looking at a price action forex chart and comparing it to their forex trading strategy to see if there are any price action setups available.
When you trade based on anything other than a clear forex market price action setup or in line with the rules of a pre-determined trading system, you are only acting on your own gut feeling rather than analyzing the price action objectively. Because they succumb to the feelings of revenge that a losing trade usually elicits or the feelings of greed that their often winning trade provokes, many forex traders trade emotionally after making a winning or losing trade.
These subtle moments, which also distinguish consistently successful forex traders from novice losers, are when traders move from trading based on what they see on the forex chart to trading based on what they think or feel.
Stay away from any particular forex trade
Don’t get stuck in ways, it’s important to realize that just because you think something is going to happen in the forex market, it doesn’t necessarily mean that it will. Along the same lines, even if you come across a setup that seems too obvious and perfect, you should always keep in mind that the forex market is a dynamic, ever-changing and ever-deteriorating arena in which anything can happen at any time.
As such, you shouldn’t be putting all your money on the line just because you think you’ve found a setup that looks like a surefire win-win because there is no such thing in the forex market, or any market, that it is.
You must learn to trade emotionally away from your trades to avoid enabling yourself to become emotionally attached to any transaction or to think about what the Forex market might do. Let the price action of the forex market guide you through the uncertainty and noise in the market, but always remember to control your risk in your trades, even with seemingly large trading situations. If you trade with price action, stay on track and don’t shy away from giving in to what you think the forex market should or might do by trading according to the principles of the price action trading method.
If you want to succeed in the forex market, learn self-control
One of the simple, sometimes-overlooked facts about forex trading is that the market doesn’t care if you make or lose money, doesn’t even know you exist, and doesn’t bother with you. However, the majority of forex traders experience emotional reactions to their trades and the market, which results in them giving inanimate authority over their actions rather than exercising self-control. Until you master your emotions and reactions in the forex market, you will not be able to profit consistently from the market.
You will be on your way to becoming a consistently profitable forex trader once you learn to trade only what you see on the price chart and not just what you think. Trading what you see and not just what you think means that you are managing yourself rather than letting the Forex market control you. The secret is to constantly trade what you see rather than what you believe or feel. By doing so, you may avoid acting out of revenge or greed after a loss or successful forex trade.
Forex traders who are successful in the forex market are those who consistently trade simply what they observe on the forex price chart rather than what they think might happen, as well as those who manage their risk efficiently. You will be in a better position to succeed in the forex market when you learn to trade with high probability price action setups while simultaneously managing your emotions and risk in the forex market.
We have provided tips on how to trade only what you can see, not what you think. In fact, making sure you do this is another thing. With some practical suggestions you can take to make sure you are only trading what you can actually see and avoid acting emotionally when you enter forex.
The behavior of maintaining a bias in the face of contradictory data from market movement or fundamental topics can gradually harm your forex trading account.
Remember that you should trade based on what you notice, not what you think the markets should do, when it comes to high-risk markets and unexpected changes.