Forex trading psychology

People often ask me what trading books I’m reading. I always answer the same thing: I only read books about trading psychology.

If you’re on top of the news and know the basics, trading is 99% psychology. Very few people are more dialed into the news than me and the rest of the guys at ForexLive but that doesn’t always give you the confidence to make a trade and hold it until the right time. You have to know yourself and master the internal part of trading.

This is a simple little article a stumbled upon that talks about understanding how your perception can be altered by your environment and sense.

College students have been shown to walk slower after hearing the words gray hair, glasses, knee replacement. Interviewers have shown they can feel differently about a candidate depending on the temperature of the coffee cup they just held. Our unconscious sensory and information machine is working all of the time. It pays to make it an asset and not a liability.

And here’s a little something to help you keep from chasing your tail. I’m also told that cute animal images can put you in the right mood for trading.

Here is how to give yourself a pep talk