Forex Robots – Invest on Forex Robots and Let Objectivity Rule Your Emotions

The nervous system is an integral part of the human body. It contributes a great part to human emotions. Psychologists say whatever comes through the mind must first pass through the senses. In the world of foreign exchange (forex) trading, human emotions play a part in the decision-making process that spells one’s success and another one’s failure. Why do traders’ results vary so widely? The difference lies in our mindset – the human emotions which play behind every decision we make.

In his book “Trade Your Way to Financial Freedom,” Dr. Van Tharp discusses how psychology plays a large part in your trading success. Dr. Tharp claims three factors influence a trader’s success: (1) the system; (2) money management; and (3) the psychology of thought and emotion. He believes that psychological decisions trader’s make accounts for more than half of their success or failure.

In the trading world, emotions like fear greed, vanity, pride and hope affect your investment decisions as well as they affect every decision in your daily life. Dr. Tharp refers to this as the “psychology of the mind.” Generally, this refers to your thinking and emotional actions and responses to any given situation.

Loss aversion is a classic mistake that novice traders make in this industry. This blunder is difficult to avoid since human nature estimates losing highly. Thus it is harder losing $1 than getting elated over winning $1. Most traders hold on to a losing stock even though it continues to lose value. The trick is when the trade becomes emotional one has to learn to cut his loss and relish on the profits on the run.

Novices at the currencies trading market also commit the natural mistake of viewing success as winning and attributing losing to bad luck. Naturally, traders want to be regarded as winners and never dreamed of being regarded as losers.

Because human emotions affect our investment decisions, traders turn to automated currencies trading robots. A current trend in the forex market is for beginners to purchase an automated forex system to minimize the amount of loss a new trader may incur in the forex market. Devoid of human emotions, forex robots can help you make decisions based on incontrovertible mathematical facts than on the whims and caprices of human emotions. Dr. Tharp believes that emotions rule more than half of your trading decisions. Invest on a forex robot and let objectivity in considering the trends in the forex market rule your emotions.