It is now confirmed that Emotions rule while making a decision in Forex trading over logic. Emotions otherwise related to feelings comprises of experiences having set of expression such as love, anger, happiness, sadness, fear, pain, misery, etc.  Emotions are definite reactions to a particular incident that are typically for short period.  

Mostly the flow of emotion to a particular situation is more out of past experience. For example in a sight of loss someone would take it easy if in past a trade was recovered and went in a profit as compared to someone whose losses couldn’t recover. Therefore the response to same situation could have a different emotions and feelings.  One could react as if its normal and part and parcel of trading a trade having a loss which can / maybe  recovered and other could feel let down based on past experience where funds were lost feel. There are high chances of people taking different decision to a same situation and what rules here is emotions.  

One major emotion which tops my list based out of research is “Fear of Loss” or else universal known as “Fear of Failure”. This emotion is been ruling majority of the world not only in Forex trading but in day to day life when it comes to financial matters. It’s been deep rooted in sub-concisions mind wherein people generally are not conscious to it. The biggest irony is: majority of people don’t know this emotion is ruling them day in and day out every minute and every second.

One of the effective ways to overcome or rather control your emotions in Forex trading is by identifying one proven strategy which is consistently giving profits. Caution: No strategy in the world would give you 100% results; the point here is to identify a strategy which has 80% success rate. The strategy should always be implemented on a demo account at-least for two months to understand success rate. Never draw a conclusion by only trying out for few weeks; reason being is two months consistent profits generally would take into account lot of factors of the market such as fundamental, market trend, etc. This would help to understand how effective the strategy is during different scenario. Remember once an effective strategy is identified there are strong chances it would last forever or to a longer extent which would fill in your equity balance tremendously.

Though there were not many reports with regards to Dollar yesterday therefore it showed mixed response. It got stronger with few currencies and vice –versa. EUR strengthen against all major currency reason being Greek Parliament approved austerity measures which came as sigh of relief for European Union. The next level to look at EUR / USD pair is 1.4350. If this pair breaks this point then one can expect it to reach 1.4450.

The support level for various other pairs would be USD / JYP would be 80.45, GBP / USD 1.5905 and EUR / JYP 114.01 likewise resistance would be USD / JYP 81.10, GBP / USD 1.6000 and EUR / JYP 115.90. If the above support or resistance level is broken / crossed there is a possibility of making 20 pips on each pair.