Wednesday February 1, 2012 19:12
Forex Trading: Breaking Emotional Models?
Posted by Pro Trader as Intro to Forex
How these methods and technics work?
The majority of our problem models are painful for us – nobody likes to feel disturbed or oppressed. It is pledged in a human nature – desire to avoid emotional pain. Leaving from the problems, however, we never learn that the control necessary for their elimination.
Gradually and more and more intensively subjecting yourself to the stressful situations, all time, fulfilling methods how to cope with them and supporting the control, we build sensation of skill. Thus people learn to overcome various phobias and to weaken consequences of psychological traumas. No conversations will replace the first experience of direct collision with a dangerous situation and the subsequent stay in a controllable situation. The repeated success changes own self-appraisal and it changes our conversation with ourselves. Suddenly, we really start to feel and believe that “I can make it!”
Application of methods of an exposure in trade
If you are going to become the own therapist using an exposure method remember a key rule: you always should activate problem models to overcome them. It is not enough to think of the problems or to talk about them. You should test actually the problem models in real time, gradually and with increase and to undertake conscious efforts to counteract these models. If your problem in trade arises at increase in the size of positions you should gradually and steadily trade in great volumes. If your impulsive model of trade arises during the markets with low variability in the absence of a trend or first minutes of trade then you should work over yourselves.
Fortunately, we can accelerate emotional change through the process known as image exposure. The image exposure can be considered as a psychological equivalent of virtual trade. Instead of starting to face problem situations in actual practice (known as an exposure under natural conditions), we can brightly imagine the scenarios connected with our negative models and mentally rehearse strategy how to deal with such scenarios. The image exposure isn’t as powerful as collision with problems under natural conditions (so virtual trade lacks a reality), but it will be a useful starting point in construction of feeling of success and skill. The same as to athletes mental rehearsal helps to perfect sports skill, the mental problem resolution in trade can prepare us for real things.
So I think everything is pretty understandable and if it is not pretty clear to you I can advise you to read the following part of the article when I will be giving some practical examples of using these technics of emotional behavior in forex trading. So if you are interested in it, just keep reading other parts of these series of articles.
For the helpful tips about forex trading – please visit this web site.
Those who are in search of forex investment opportunities – visit this forex managed account site.
Tags: currency market, currency trading, forex, forex market
