Part II. Psychiatry trade

Many literary publications and articles dedicated to the Forex market often use the terminology of "trading psychology" in their conclusions, describing the influence of a trader's emotional state on the outcome of their transactions with financial instruments. We deliberately did not adhere to the established tradition and named one of the final chapters of our Forex trading education "trading psychiatry." Let's try to understand the difference.

The point is that some journalists and laypeople equate Forex trading with gambling and other forms of addiction, and this is not entirely unfounded. There are traders with a genetic predisposition to gambling addiction who fall into the trap of their own thrill. Once they try Forex trading, they become deeply involved in it and can no longer imagine their lives without it. And considering the fact that Forex trading only requires sitting at a home computer and going online, getting another "dose" of excitement is not that difficult.

Gambling addiction, just like alcohol and drug addiction, is merely a consequence. The underlying cause, in most cases, lies in the fact that a person simply lacks something for happiness and joy in life. They may be in a suppressed state or, even worse, in depression. In such circumstances, a person tries to find the missing pleasure through alternative means, only burying themselves deeper and tightening the noose around their neck. Thus, Forex trading is a remarkable thing. It can be a tool for earning if approached correctly and a drug if taken to extremes. And addiction and psychiatry are closely intertwined, which is why we specifically refer to it as "trading psychiatry."

There is no need to elaborate on how the obsession with quick profits in Forex ultimately leads to haphazard currency trading and, in turn, the depletion of one deposit after another. The bitterness of losses breeds anger, and anger breeds fear, which is equally destructive to a person's nervous system as a drop of nicotine is to a horse. In the end, your pain of losses grows into the pain of losing loved ones who are "losing you" – they are not detached from what is happening. The obsession with Forex trading can quickly destroy your personal life and family, just like drugs. Therefore, before you start trading, determine your purpose and whether you are capable of controlling your emotions.

If you feel that trading Forex is dragging you down with the current, either stop trading altogether or reassess your attitude towards it. Emotions and sound calculation are on opposite sides of a very delicate line, so don't let greed and addiction ruin your life! We hope that Forex trading will become an engaging and profitable endeavor for you in moderation.

Part III. Money Management Secrets

This part of Forex education focuses on capital management tips in the Forex market. When trading currencies, it's not enough to simply learn the basics of technical and fundamental analysis; you also need a clear money management plan for your deposit. Only when these tools are combined can they lead you to consistent earnings in Forex.

In addition to that, don't forget the material covered in previous sections. Building a profitable trading system also requires a prediction mechanism based on retrospective data and good psychological preparation. Thus, the secrets of successful trading include four components:

• Analysis methods (technical and fundamental).
• Prediction system based on past data.
• Psychological preparedness.
• Capital management scheme.

Intuition can also be added to this list as it can be valuable in any endeavor. However, this section will specifically focus on capital management schemes.

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