Forex Trading Psychology

While learning a lot about market analysis and money management is an obvious and necessary step to be a successful Forex traders, you also need to master your emotions to keep your trading performance under strict control of mind and intuition. Controlling your emotions in Forex trading is often a balancing between greed and cautiousness. Almost any known psychology practices and techniques can work for Forex traders to help them keep to their trading strategies rather to their spontaneous emotions. Problems you'll have to deal while being aprofessional Forex trader:

• Your greed
• Overtrading
• Lack of discipline
• Lack of confidence
• Blind following others' forecasts

These are very professional books on psychology written specially for financial traders:

• Calming The Mind So That Body Can Perform
• Emotion Free Trading
• The Miracle of Discipline

Money Management in Forex

Even if you master every possible method of market analysis and will make very accurate predictions for future Forex market behavior, you won't make any money without a proper money management strategy. Money management in Forex (as well as in other financial markets) is a complex set of rules which you develop to fit your own trading style and amount of money you have for trading. Money management play very important role in getting profits out of Forex; do not underestimate it. To get more information on money management you can read these books:

• Risk Control and Money Management
• Money Management (A chapter from The Mathematics of Gambling)