Your emotions often affects the way you trade. Here is a brief article on putting your emotions manageable lifted from GO Markets.

Quite often, the greatest opponent you have while trading is not the market but yourself. When trading, greed and fear often limits the potential returns from profiting trades and on the opposite side of the spectrum can result in greater losses than necessary or turn potentially profitable trades in to losing trades.

All traders (successful and unsuccessful) can attest to holding on to losing trades for far too long for no other reason than the “hope” that they become positive again. This is otherwise known as being too greedy.

Alternatively, the fear of taking profits too early or closing at a small loss when they can potentially be profitable is also another emotional response that needs to be adjusted. Good traders strictly follow a complete trading plan that incorporates money and risk management, entry, exit rules and do not let emotions influence their trading.

Interested in Foreign Exchange? Increase your Forex Education for Free. Read the Golden Rules of Trading laid down on the e-book from GoMarkets by signing up here.

(Video on Trading Psychology from Advance Trading Systems.)