However, while all of these forces no doubt play a short term role in price 
movements on the and other financial markets, their influence is very temporary and the prices soon reflect them. It is not common for scalpers or day traders to enjoy long-term success because the volatile nature of the market makes losses more likely with more trading.
There is another force that does play a role in the movements of all financial markets: human behavior. Indeed, Psychology is a very big factor in any investment decision and its effects can be studied in financial charts. Four human emotions play very big roles in the price movements on the Forex:
·Greed
movements on the and other financial markets, their influence is very temporary and the prices soon reflect them. It is not common for scalpers or day traders to enjoy long-term success because the volatile nature of the market makes losses more likely with more trading.There is another force that does play a role in the movements of all financial markets: human behavior. Indeed, Psychology is a very big factor in any investment decision and its effects can be studied in financial charts. Four human emotions play very big roles in the price movements on the Forex:
·Greed
·Fear
·Faith
·Hope
Greed compels even technical traders to ignore stopping points and chase a trend too far—to the point of loss or losing a significant portion of profits. Once an exit point has been reached—cash out.
Fear of loss is a very common human emotion and it definitely causes many investors to take a loss too hard and quit investing. However, simply setting acceptable stop/loss orders will prevent you from losing more than you are comfortable with.
Even faith and hope can cause us to chase profits too far or not get out when losses start to mount.
Greed compels even technical traders to ignore stopping points and chase a trend too far—to the point of loss or losing a significant portion of profits. Once an exit point has been reached—cash out.
Fear of loss is a very common human emotion and it definitely causes many investors to take a loss too hard and quit investing. However, simply setting acceptable stop/loss orders will prevent you from losing more than you are comfortable with.
Even faith and hope can cause us to chase profits too far or not get out when losses start to mount.
Technical analysis, continuous back testing, and sticking with an investment strategy while being open to adjustment—these are all common traits in the most successful traders. Although the economic indicators and news releases do play a short term role in prices, it is ultimately human Psychology that moves the Forex. ...(and more ...>>)
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