By Alexander Brin, Thu Dec 8th
It should be noted that millionaire traders, Elder, Williams andsome others are in fact professional psychiatrists. And it isnot accidental that not the economists are the leaders and mostsuccessful traders, but professional psychiatrists andpsychotherapists. Think about it. You will become a successfultrader when you understand why it happens with Forex. You willunderstand what your Forex mistakes are, and why you are makingthem. And when you correct these mistakes you will become atrader who has no psychological barriers and obstacles on hisway to better earnings in the Forex market.
So, why do the psychiatrists make better traders than economistswho, as one would think, have the Forex market at their fingertips?
The economists are confused by:
- the fact that exchange rates are not always related directlyto the economic circumstances in the countries. Well, do youknow any economist who would be bidding for low fx rates whenthe economic situation is getting better and better? Or the onewho admits that technical analysis of currency pairs is moreimportant for Forex trading than the fundamental one? Anyeconomist is confident that this can never happen because heknows all the economic dogmas. But it happens in the Forex.After all, how can a trader lose with the currencies moving upand down by the economic rules? The currency will surely reactto the economic changes in the country, but who knows when andhow? Here is a tip: there is the Elliott fifth way to teach alesson to the ones who believe that fundamental knowledge isenough (before the trend turns, the currency spurts absurdly bythe old trend), to confuse
and draw the newbies into the game,while the experts wait for the trend to turn back.
- the lack of psychological knowledge that helps to understandthe behavior of the crowd. And that is self-evident.
Are there any methods to overcome this fear?
It seems that every Forex book, every article offers efficientsolutions for psychological difficulties experienced by thetraders.
IN FACT NEITHER OF THESE BOOKS CONTAINS METHODS TO OVERCOME THEFEAR EXPERIENCED BY A FOREX TRADER!
But what do these books offer instead?
Almost every book of this kind consists of two unequal parts:
- the bigger part of the book narrates about traders' problemthat interfere with their Forex work and make it unsuccessful(nervousness, doubts, worries, fear, sleep deprivation, etc.).As if the traders do not know their own problems.
- the considerably lesser part contains conclusions andrecommendations to the traders who are to solve their problemsand overcome their fears to become successful.
The conclusions are disappointing:
Many psychiatrists realize that the new field opens before theireyes - now they may treat traders whose number amounts tomillions all over the world and is growing with every day. Andsince most traders have a dream to become as successful asGeorge Soros and other famous traders, this new field promisesto be rather lucrative.
One thing is bad though: the overwhelming majority of thesenew-sprung trader brain specialists do not even know what theForex is all about.
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