Foreign market is a place where the money supply and demand meet denominated in one currency, which is exchanged for money denominated in other currency. Foreign market is not institutionalized. It is a network of all banks, dealers, tradesman, and market makers in the world, who make this market operable almost every day, day and night. The purpose of each participant is the same. Realization of profit.
But, how to become a successful dealer?
Even the best sportsmen miss a penal in their most important matches in their carrier. It is not because these sportsmen do not have the necessary values and abilities, but because their emotional situation has succumbed, because they experience stronger stress and failure fear. Feeling of stress and fear has high impact on the dealers in reaching decisions in foreign trading. Ability to manage the emotional situation, suppressing the fear in him/her, may largely improve the quality of decision making.
Psychology in foreign currency trading is very important. Very often the psychology and not the lack of education or skills is the reason for making errors. Trading psychology provides following the assigned goals, irrespective of the current losses.
Most of the people begin to know the foreign market with technical analysis of the charts, with historic trends of currency pairs. There after there is fundamental analysis, why some currency pairs behaved as they had in the past and how would they behave in the future. The challenge is to find the right combination of tools, which shall provide the dealer with realization of profit.
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