October 17, 2008
Forex Market Forecast Issue #62 - Fear, Greed, and Regret - The Killers Of Your Equity
Welcome Everyone,
Clint J. passed this article on to me and I want to share it with all of you. It is particularly relevant in the current market conditions.
Emotions of fear, greed, and regret are driving the market these days. Greed drives the masses to trade rather than stand aside until the dust settles. With each new piece of news, the masses buy on good news, sell on bad news, and regret their decisions, and thus, buy and sell to "undo" what they see as a mistake. If you want win in these chaotic markets, however, you can't let trading emotions influence your decisions.
Market action is powerfully influenced by fear and greed. But many traders allow disappointment and regret to make throw them off track. We feel isappointed when our trades fail to meet our expectations. We feel regret when we think that we have made a poor decision that could have easily been avoided. There's an assumption that underlies both emotions: We may believe irrationally that as traders we must always be right and that trading outcomes must meet our expectations. Unless our expectations are met, we believe it's terrible, awful, and unacceptable. This core assumption, however, can be questioned. And by doing so, you will be able to cultivate a peak performance mindset more easily.
It may be unpleasant, or an inconvenience, when our expectations are not met, but it isn't so terrible, awful, or unacceptable. By merely changing our perspective on this issue, we can change how we respond emotionally to trading setbacks. If we believe the events these days are terrible and awful, then we are going to be prone to experience extreme feelings of disappointment and regret.
However, if we assume that setbacks and losses are inevitable, we will be prepared to cope with them. We will come to expect them, and we are likely to think that they aren't as terrible or as awful as we had assumed they might be. By taking an anticipatory approach to trading, not only can we rein in our emotions, but put a trade in the proper perspective. If you trade in chaotic times like these, you are bound to be wrong part of the time, and you might as well accept your fate. Once we accept this fact of trading, we will be able to see that setbacks aren't as terrible and devastating as we had thought. They are just part of the game. There's no point in overreacting. With the proper perspective,
you can survive these chaotic times. From - MarketWise
I hope this gives you some food for thought and helps you trade smarter and better.
VERY IMPORTANT: If you are new to our forex market forecast service I urge you to get up to speed on how to get the most out of it. This will also explain what the abbreviations I use mean. To get all the details click the link just below:
http://www.askjeffwilde.com/97/how-to-use-the-forex-market-forecast-service/
Here is a video that will teach you how to get the most out of this newsletter. TO VIEW CLICK HERE:
This issue sponsored by:
The Black Dog System is slaying the markets:
75 TRADES IN JUNE - 55 WINNERS and 3 BREAK-EVEN
58 TRADES IN JULY - 42 WINNERS and 1 BREAK-EVEN
Ok, lets get to it…
TPD3 1.8813
TPD2 1.8145
TPD1 1.7613
============
TPU1 1.6595
TPU2 1.5988
TPU3 1.5439
LT = Down
IT = Down
ST = Down
EUR/USD
TPD3 1.4962
TPD2 1.4471
TPD1 1.3835
============
TPU1 1.2967
TPU2 1.2503
TPU3 1.2074
LT = Down
IT = Down
ST = Down
USD/JPY
TPD3 114.42
TPD2 108.63
TPD1 103.53
============
TPU1 97.89
TPU2 92.50
TPU3 83.52
LT = Down
IT = Down
ST = Up
USD/CHF
TPD1 1.2191
TPD2 1.1873
TPD3 1.1595
============
TPU1 1.1129
TPU2 1.0836
TPU3 1.0613
LT = Up
IT = Up
ST = Up
Until next week…
Peace & Prosperity
Jeff Wilde
============================================================
============================================================
Disclaimer: This web site, it's content and it's product offered is not intended to provide investment, tax, or legal advice. This web site and its information is provided for guidance and information purposes only.
Filed under Blog, Forex Newsletter by Jeffrey Wilde
