Five Basic Human Weaknesses In FX Commodity Trading

Five basic human weaknesses in Forex Commodity trading: Greed, fear, impatience, pride and lack of knowledge. How do these emotions can cause so many Forex traders to lose money? Let’s examine this five.

1. Greed
Greed can cause poor forex Commodity traders increasing the size of their trading positions the moment they’re still in a winning position trade. This often results in these forex commodity traders having the largest position size trade just before the market turns in the opposite direction. As a result, this causes them to suffer large losses.

2. Fear

Fear makes people avoid entering into good trades because they don’t know what they’re doing. Heard of the phrase “buy low, sell high”? Unfortunately, many traders think that this is true. The profitable traders however, know that a more accurate phrase would be: “buy high, sell higher” or in other words Trends is your friend, forex trader who know how to trade the trends will make profits.

Fear is often the result of not knowing what one is doing. If you have a proper, reliable forex trading system, fear shouldn’t be in your forex trading vocabulary.

3. Impatience

The opposite of fear, impatience can lead people to enter into trades when there are no clear forex trading signals. Needless to say, most of these impatient trades usually turn out to be unprofitable.

4. Pride

This is very possibly the worst forex commodity trading weakness of all! Pride makes a forex trader hold on to losing positions with the false hope that the position will turn around in his favour. Winning forex traders are humble, and aren’t afraid to admit that they’ve made a mistake when they lose money. After all, no one can be right all the time!

Unfortunately, many losing forex commodity traders refuse to admit that they’re wrong, and often lose money to pay for their pride.

5. Lack of Knowledge
The most important thing in Forex Commodity trading is you must have proper knowledge
before you jump into forex trading. Lack of knowledge can cause many forex trader loosing their money.

Understanding the effects of this five basic human weaknesses is crucial before a trader can be a consistently profitable trader. Overcome this weakness and train yourself with proper forex knowledge and diciplines, and don’t fall into this traps yourself!