The Psychology of Becoming a Profitable Forex Trader

Today, we touch again upon that never-ending debate, particularly amongst newer traders, about the role of psychology in becoming a profitable and successful trader.

How much does it play a role in trading?

Some argue it plays no role and that all that needs to be followed are one’s trading signals.

Others swear that it’s role is 80-90%.

How these percentages are calculated or how accurate they are is irrelevant.

The truth is, psychology can make or break your trading career.

We are all different.

Some traders are incapable of changing their behavior and no matter what system they have decided to follow, they just cannot do it.

Certain personality traits are in the driving seat and cause them to break all their rules.

For instance, a personality type marked by greed combined with emotional traits such as impulsiveness will create the conditions leading to the eventual demise of even the most innately gifted trader.

An over-confident personality susceptible to being governed by emotional forces such as impatience is a similar destructive psychological amalgamation; anything that moves is seen as a potential trade.

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