The biggest urban legend of the forex market is that market professionals know all the secrets of the trade and that is why they are successful and that it is very important to have extraordinary knowledge of the market to become successful in this stream.
Contrary to popular belief the fact is that the knowledge of the market is not the most important for a trader. Obviously a knowledge of the tools, operation of the market, technical and fundamental analysis is important, but it is only the base from which to start. In reality, this is not said very openly in the financial field, those who succeed in the financial markets has developed capabilities of Money Management and mind that are far more important.
The Money Management in Forex is based on techniques for reducing the risk in the market, reduce losses and increase profits gradually over time. Its a key component for a trader for its long-term survival in financial markets. The Psychology of Forex Trading, but, has to do with the emotional side. It is learning to control his emotions so that they do not interfere with our decision-making power. For example, in everyday life, in certain situations, emotional stress, make decisions that we took a cool head. The same, magnified to the nth degree, is in the financial markets where the emotions linked to the risk of losing our money we can bring to make decisions are not rational, and consequently many harmful.
These two aspects are what make the difference between a mediocre and a successful trader. The good news is that you can learn and you can train to change its approach to trading. Of course, as in all things, should have the right amount of will and application.