It should be noted that millionaire traders, Elder, Williams and some
others are in fact professional psychiatrists. And it is not accidental
that not the economists are the leaders and most successful traders,
but professional psychiatrists and psychotherapists. Think about it.
You will become a successful trader when you understand why it happens
with Forex. You will understand what your Forex mistakes are, and why
you are making them. And when you correct these mistakes you will
become a trader who has no psychological barriers and obstacles on his
way to better earnings in the Forex market.
So, why do the psychiatrists make better traders than economists who,
as one would think, have the Forex market at their finger tips?
The economists are confused by:
- the fact that exchange rates are not always related directly to the
economic circumstances in the countries. Well, do you know any
economist who would be bidding for low fx rates when the economic
situation is getting better and better? Or the one who admits that
technical analysis of currency pairs is more important for Forex
trading than the fundamental one? Any economist is confident that this
can never happen because he knows all the economic dogmas. But it
happens in the Forex. After all, how can a trader lose with the
currencies moving up and down by the economic rules? The currency will
surely react to the economic changes in the country, but who knows when
and how? Here is a tip: there is the Elliott fifth way to teach a
lesson to the ones who believe that fundamental knowledge is enough
(before the trend turns, the currency spurts absurdly by the 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 understand the 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 efficient
solutions for psychological difficulties experienced by the traders.
IN FACT NEITHER OF THESE BOOKS CONTAINS METHODS TO OVERCOME THE FEAR 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’ problem that
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 and recommendations
to the traders who are to solve their problems and overcome their fears
to become successful.
The conclusions are disappointing:
Many psychiatrists realize that the new field opens before their eyes –
now they may treat traders whose number amounts to millions all over
the world and is growing with every day. And since most traders have a
dream to become as successful as George Soros and other famous traders,
this new field promises to be rather lucrative.
One thing is bad though: the overwhelming majority of these new-sprung
trader brain specialists do not even know what the Forex is all about.
