The Psychology Of Coin Flipping, Opening FX Operations

Posted by admin On February - 1 - 2009

One of the questions that seems to me one of most complicated for an inexperienced or experienced broker, it’s to “shoot”, sort to say, to open a forex operation, if we added to this other variables to which we must fight when we interact with the market, the results can become catastrophic on our balance if we do not know the implications while open operations.

Really, what is it what makes us open up an operation, deciding on to purchase or to sale? For most of the brokers the answer comes naturally by the fact that “they are sure” about what is going to happen in the market or have a higher degree of certainty or are trustworthy in the probabilities that they have determined on basis of their analysis or simply because they have their own system.

But even if we are very confident, start opening an operation can be very complicated. It can be very frustrating to see a good signal during the operation and not act accordingly and later observe how our possible operation may have had given us a good profit. So why is that?, just thinking in the previous situation, in the context of a broker who just finishes closing a few operations with great loses and therefore painful, would that not seem more complicated to him than before to open the following operations or inclusively much more dangerous?

There are fx elements we must take in consideration when we open positions; to observe how each one of them has influence in our strategy can help us make better decisions.

Share and Enjoy: