Trading Psychology-Simple Reason That Separate Winners From Losers


Trading Psychology is the categories that a trader need to study on.

If you want to become a winner, you MUST master this skill.  

It is the main factor that separates the profitable and non-profitable traders.


First, we need to know,

What is Psychology mean?

The definition of Psychology is:

“The scientific study of the HUMAN MIND and its FUNCTIONS, especially those affecting BEHAVIOR in a given context.”[1]


“The mental CHARACTERISTICS or ATTITUDE of a person or group.”[1]

Trading Psychology

In trading, the Trading Psychology will be mean by the trader reaction of MIND and BEHAVIOUR in the process of trading and the reaction when facing the wins and losses. 

Additionally, it is also related to the CHARACTERISTICS and ATTITUDE of the trader themselves..

Thus, training to control your behavior and your mind is the objective in Trading Psychology to become a profitable trader..

You want to ask “Why this psychology thing have to do with earning money in Forex Trading?”


“The key to success in Forex Trading not only to have the winning trading strategy?”

Yes, having a winning trading strategy is a part of the game.

But the most important thing is…

Do the trader have the strong psychology to follow the steps of trading strategy in any condition? Especially the condition when the trader is having mental stress.

If not, then the winning strategy is just a theory but not a practical working plan. 

That’s why the Trading Psychology is so important.

When traders control over their behavior and mind, they will become a good trader. 

When you master your psychology, you will be the winner rather than loser in Forex Trading.

There are few things you need to take a note in handling your psychology in trading. 

The first thing is to be…



Trading Psychology Patience

When you back tested for a long time and learn a lot of trading strategy, the only thing you will want to do in the market is to trade and profit from it.

For many of the trader, the first and the biggest obstacle that the trader build is they lack patience.

Trading is a patience game, you need to get into the market, when you strategy is FULLY AGREED with the market conditions. 

All of the traders know that to be successful in Forex Trading, they must follow their own winning trading strategy.

But it is psychologically hard.

Especially the trader cannot find the opportunity to trade for a long period of time.

E.g. Just like a day traders cannot find any entering signal for few days. 

The thing you can do when you realize that you are having the urge to trade is to move away from the screen.

Go away and do other things,

go to exercise,

go to hang out with your friends.

Until you are emotionally stable, then back to the market again.

When you are not following your trading strategy to trade, that means you have no trading strategy at all.

So the first thing you need to master in Trading Psychology is be patience.

After you have patiently wait and trade for the ideal trade. You will have either having win or loss trade. 

Then, in the Psychology that need to handle in result of trading is the…  


Emotions When Winning or Winning

Trading Psychology Emotions

Don’t take wins and losses impact you emotionally.

Especially the consecutive losses.

They are emotionally impactful. 


When Losing

When I started to trade as a rookie trader.

When I’m having losses, I will feel the pain and discouraged.

Through the learning and experiences over the trading journey,

I have realized that as a trader,

one must accept that losing is part of the game. 

The game is a probability game.

So, the losing is just an outcome from your trading strategy and your behavior.

The most important thing that a trader do is to ACCEPT the lose and don’t let the negative emotion from losing control over you.

If the negative emotions control over you, the worst consequence is that you will make more and more trading mistakes.

These mistakes are such as not following your trading plan or trade with over exposed sizes.

What you need to do is to change your perspective about the loses made.

Take them as a lesson and journaling it down.

Loses will only be losses when you did not learn from it.

Take the full responsibility about losing and do not blame the market or anyone.

You are the cause of the result.

Tips: After I’m controlled by negative emotions, I will normally thinking back to the win rate of my trading system and revise my thinking and tell myself that the losses is just the outcome of possibility.

Then I will use the meditation technique to let my focus move to my breath. After a couple minutes, I will have a conversation with myself like…“you will want to trade for more than 10 years from now, right?….”, “Then this is just a tiny part of the game! Don’t let these small pebbles blocking your way”.

Click here for more tips of recover from losses.

Trading Psychology Control

When Winning

After we talk about losses in trading, it’s time we talk about the winning.

Winning is the result all the traders wanted.

We only can profit in winning.

But sometimes the wins may become the factor that cause us having consecutive loss.

I’m not saying the winning itself cause trading losses.

But winning is the factor affecting the psychology of the trader and indirectly causing the trader to make the wrong decision and trade with without follow their trading strategy.

The first thing that the wins affected the traders is the ego.

E.g. when a trader having consecutive wins, he may have the feeling that he can continuously winning without losing.

Then the confidence of the trader will then expand larger and larger, making he not follow his trading plan and eventually causing trading losses.

When the losses come, the impact of the negative emotions will be bigger than the normal one.

So, as a trader, be humble to your result.

Don’t let the good things (the wins) become the bad things (the losses).

As a trader, you need to see the wins as the same as the losses. You can be happy on the good result, but don’t let the emotions having control over you.

See wins and losses as the process, but not the final result in your trading journey.


Expectations of Target

Trading Psychology Handle Targets

When you as a trader, cannot meet the target you set,

example to profit 10% monthly from the market,

how would you feel? 

When the target cannot be met,

the trader will feel frustrated and try to trade more to get more profit from the market.

I also have this kind of experience before.

I think traders will have the same experience.

E.g. this happened like a trader have calculated the monthly return needed from trading in order to achieve his financial goals. 

When one of the month does not produced the result as planned,

the trader’s psychology will be affected and most likely over trading will happen.

To prevent this, it is better that we don’t set a goal that is too tight and realize that the plan will not work as we think it will be.

Prepare for the changes.

Getting prepared for the changes mentally so that you will not be affected emotionally.

It is better that trader don’t focus too much on the return.

But rather than focus on the process of placing quality trades and optimizing your trading system.

It is just like a person who wants to lose weight. 

Always stand on a scale cannot make one cut down the extra weight.

If he want to lose weight, he will need to focus on his diet plan and exercise plan and execute them.

Traders, put your focus on the right place.


Balance life

Trading Psychology Balance Life

Your life will reflect in your trading performance. 

Energy Level

The most important part is the energy level when you are analyzing the chart.

E.g. I’m a part time trader,

one day,

after a long work day and I reached home around 9 something.

I directly open my PC and start looking at the chart to look for opportunity for trade entry. 

That time, I’m very sleepy and can barely open my eyes. 

Then, I found an opportunity to enter a new trade, after I enter the trade, I’m then close my PC and sleep.

The next day, I realize my trade hit my stop loss and I have a loss. After my revise on the trade, I realize that I had ignored some of the signal that set in my trading strategy. 

That is a painful experience. 

After that trade, I will make sure my energy level is high enough to start analyze at the market.

Relationship With Friends and Family

E.g. When you have a conflict with your family member, there will be some emotional affection when you do your trading analysis. 

It is better to solve the conflict or let yourself cool down before heading into the market.

It is also a good choice to keep yourself away from others when you analyze and trade.

Work Problems

E.g. It is the same when you have stress at work.

The stress may affect the emotions if a trader did not control it wisely. 

The emotion of frustration is the first and biggest emotion that you don’t want to take with you when you are trading.

It will build the negative snowball effect especially when you lose your trade after trading with frustration emotions.


Trading psychology is one of the key elements for building a successful trading career.

With a certain degree on mastering own psychology, a trader can have a very high chance to become a winner in trading.

Training your Trading Psychology is the hardest thing that every trader need to learn.

Having a good Trading Psychology is to maintain a good state of mind for trading.

A trader need to be in the state when he want to have high performance. 

A trader’s psychology needs to be maintained at a good level for having a long term profit from the market. 

To maintain it, a trader can learn some Mental Exercise, which is like meditation.

The Mental Exercise can help a trader to train the psychology muscles for a trader.

By having enough psychology muscle, it can give you good psychological strength to handle obstacles in the trading journey.




Thanks for spending your precious time together.

Let us grow and learn together.


Jordan V.

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