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4th Psychological Erroneous - Lack Confidence
After few unsuccessful Forex trades which incur huge losses, Forex traders might get lack of confidence in Forex trading. Forex traders getting fear and indecisive towards the Forex market.
After open a position that in line with the trend, enter at the right price, but getting nervous and unfomfortable after winning only 10 pips, fearing the floating profit will vanish in any time. Lack of confidence, Forex traders tend to close the position with little profit.
While making losses, Forex traders always have confident that the price will bounce back and will never cut loss. But when making profit, the confident seems disappear. This resulted most Forex traders win less and loss more and the net result is making losses.
In Forex trading, must stop early when making loss and must wait patiently when making profit.
Next: 5th psychological erroneous - Overtrade
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