1. Before the position opening everyone is equal. Some traders are so assured that they are right, so they are ready to defend their opinion, other traders are “silent” traders. They silently listen to another’s opinion, but do what they want to. The third traders are ready to discuss anything and for any period of time and are ready to spend in conversations 24 hours a day. On the results of trade this difference in behavior doesn’t render any influence. Each of them is equally dangerous at work with “live” money.
2. After a while (5-10 minutes or next day for long-term positions) after the position opening it usually becomes clear if the transaction has been arranged correctly or wrongly. In a short time interval it is possible to define, how a trader reacts at reception of positive and negative emotions in aggressive or passive way.
Among passive traders averaging cases are characteristic. Similarly, but for other reason it is recommended to adhere to the financial plan and to aggressive traders. Last type of traders is inclined to hasty, rash actions, that can bring much harm to them. Active traders are inclined to “turning”. Before opening and closing a position you must find out on what basis of the data or conclusions the given transaction is arranged. If you don’t receive the objective reasons and the intelligible answer corresponding to them, before you instinctively or intuitively focused trader. For an instinctive trader the reference to the physical reasons of realization of the transaction, the reference to the previous experience and behavior of the market are typical. Intuitively focused trader in general can’t tell anything reasonable, except the reference to the presentiments. If the fact of the arranging of the transaction is logically explained, then this is a trader of intellectual type. A minus of this type: the excessive rationality frequently serves as cover of fear of the unknown market, fear of the arranging of a transaction.
The instinct of a trader is shown at material level. Any initial action of the trader is considered as his/her desire to satisfy various material interests. If, having made any action (purchase or sale), the trader has incurred losses then this is almost the same when in the process of getting of food the trader has encountered an absolute obstacle and has lost either left eye, or right foot. Any normal person will draw back and try to avoid this place. If the trader has earned, and it was easy enough, the given fact is equated to detection of good wood grounds where a lot of unscared game. The trader will come more often to such “good grounds”. So, we can see the original prototype of trend behavior of the market when strong unidirectional dynamics of the price supports itself.
The intelligence of the trader is shown in his/her ability to think of the events logically and to accept on this basis the most simple and the right decisions. If the instinct operates unconsciously, using patrimonial memory (these are recommendations of teachers and a set of simple rules) the intelligence tries to comprehend independently these recommendations and rules according to own outlook and the changed external conditions. The intelligence urged to help to break the deadlock, where can get simple following to old rules.
The intuition is an ability of a person to get into essence of things not by a reasoning or logic thinking, and by instant, unconscious inspiration. It is ability of the trader “to see the market not with your mind, but with your heart”. But, even having advanced intuition, it is impossible to operate in the market, using only it. This is the same how to be on the razor-edge breakage blindfold. It is tiresome at least and as a maximum – it is possible to lose all.
As in every other niche of life foreign exchange market needs some knowledge.
Of course, one can start forex investment and be quite successful about it. However sooner or later the losses will come. This is when one might think “Why did I fail to start with a nice forex trading education?”
This does not imply that after reading even the greatest materials you will start closing trading positions with huge income, but this knowledge will save you from many troubles. And even if you decide to get the assistance of a managed forex account service, still you will be able to make a much wiser decision.
And a final piece of advice – today the web technologies give you a really unique chance to choose exactly what you need at the best terms which are available on the market. Funny, but most of the people don’t use this opportunity. In real practice it means that you should use all the tools of today to get the info that you need.
Search Google and other search engines. Visit social networks and check the accounts that are relevant to your topic. Go to the niche forums and join the online discussion. All this will help you to build up a true vision of this market. Thus, giving you a real opportunity to make a smart and nicely balanced decision.
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