The human mind is very complex. There are several thoughts coming up every second. You are present to some and not present to some. The thoughts which govern your trading can also be prime reason of your failure.

The thought of becoming rich quickly. Quiting your day job or buying a new sports car therefore you need to make money faster from forex trading. This leads to overtrading or giving un-necessary larger exposer to your investment. In the event of reverse trade the damage create is huge and heart burining. Forex trading would give you lot of money but not overnight or in short run. Forex trading can be made into career and money earned can give your lot of monetary happiness. But it takes lot of time to learn the skills of trading which comes with experince over longer period of time.

Humans have tremedous attachment to money. Losing money is very painful. It’s more painful as compared to falling down from a cycle while learning to ride it. The attempt in our daily life to save our self from undergoing this pain and many occasion to avoid such situation we land up taking hasty or rash decission. Later we regret. Remember in one of my article I said, losing money in trading is cost paid towards learning trading. All you can do is pay less price to learn the same, it means trade small and take small losses. You need to learn detaching your self from money to certain extent when you are trading. Taking small losses is a way to survive so that you don’t vanish, if you survive you can fight.

I can’t be wrong, I need to be right. You open a trade thinking you are going to right, the trade goes down by 10 pips followed by going down by 20 pips, 30pips, 40 pips and then you stop. When you released that you have entered a wrong trade aroung 10 to 20 pips you should stopped. It’s useless proving a point to yourself, the losses is to be borne by you.   

The psychological barriers are major killers of you account, be present to it otherwise you would be dumped as failed forex trader. Further these psychological barriers are applicable to major walks of life when ever we are dealing with money. Sooner we are present to it, better for our money management.