Third Demon: Euphoria
Euphoria is a demon in the forex world that shows the dream of unlimited wealth, but in fact, that dream never comes true. What traders actually get is poverty and endless misery. Euphoria is a fairy that makes you believe that wherever you put the money in the forex market, you will make profits and immense profits. It is like the trader has got a blessing that whatever he will do; the consequences will always be in his favor.
However, mostly euphoria has not a significant impact on the trader’s mind as it is of greed and fear. This is because they knew that success is not that easy when it comes to forex trading. Although, sometimes they can gain good profits in a short time which is rare and that also when they have already done deep study and practice. The traders who trust their research and analysis never fall prey to the false promises of the queen of the Forex World. Euphoria usually hit the beginners who make good profits without much hard work and study and who starts believing that their analysis and half-knowledge is good enough never to face any loss. They think that their strategies are flawless which is not true.
Many traders get trapped in the myth that all technical or fundamental analysis done is flawless. A successful trader with a lot of experience and practice is always dubious about his analysis, but still, he acts on it because he thinks about it logically. The demon euphoria makes you believe that if you made profits in the last trade, you could easily make a profit in the next one and this loop keeps in repeating. The fact is that the profit and loss of the new position is independent of the profits of the previous one. So, do not get excited and get trapped in the state of euphoria as next trade may or may not be profitable. It all depends on your knowledge and experience.
Therefore, you must snatch out the emotions from the study of forex trading and just concentrate on your analysis. You must understand that the string of profits and losses has nothing to do with the new open position. No trade is interlinked in the forex market. The profits or loss in the next trade is only dependent on your knowledge, study, experience and practice.