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  • Beginner
  • Intermediate
  • Advanced
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  1. Beginner
    Early Stages for Beginners
    8 Topics
  2. Forex Terminology
    11 Topics
  3. Margin & Leverage
    2 Topics
  4. Personal Psychology Questions
    2 Topics
  5. Psychology for Beginners
    7 Topics
  6. Intermediate
    Identifying Scams
    2 Topics
  7. Brokers for Beginners
    5 Topics
  8. Technical Analysis
    13 Topics
  9. Market Structure
    5 Topics
  10. Completion
    Risk Management for Beginners
    8 Topics
  11. Fundamental Analysis
    9 Topics
  12. Advanced
    Using Indicators
    6 Topics
  13. Technical Analysis (Part 2)
    8 Topics

Some Psychological Mistakes

The definition of insanity is doing the same thing over and over again, expecting a different outcome. Below, I’ll list some major psychological mistakes that can unintentionally form into long-term habits:

1. Unrealistic Expectations

In life, they say if your goals do not scare you, you’re not aiming high enough. When it comes to trading, you need to be a little realistic: nobody is going to make 1 million dollars in their first 3 months of trading. Can you have a million-dollar goal set over time? Hell yeah, shoot for the stars and don’t shoot yourself in the foot. Coming in, you don’t want to put so much pressure on yourself to become rich overnight. It takes time to learn the skills and adapt to trading in the market. It takes even longer to get a handle on your psychology.

Coming out of the week profitable is a great goal. That goal can lead to another goal, such as growing your account by 10%. As you consistently hit that goal, aim for a higher percentage. Create small goals that lead up to your end goal. You don’t want to just come out swinging because when you miss, you’ll feel the weight of that huge goal on your shoulders. Psychology plays such a huge role in trading as it can make or break a trader. Pump the break and take your time!

2. Allowing Someone Else’s Bias Influence You.

This happens mostly in group settings but can also happen when you see someone else’s charts on any social platform. When you’re new or you feel like a certain trader may have more experience, it’s easy to think their bias is automatically correct. Let me tell you something: NO ONE is right 100% of the time. Even the most experienced traders take losses and you have to be okay with that too. If you analyze the market and your confluences tell you that price is selling but you see someone else take a buy position, keep your bias. You might have seen something that they missed on a different time frame or vice versa. . Always trust in your analysis because if you lose, you can’t blame anyone but yourself. If you win, you build more confidence knowing YOU did that.