Trading psychology is the knowledge, which can be improved when a trader participates in markets actively to trade with his own money.
You may feel that trading is easy to make money and you may have think to start real trading, when you attend a demo account. You feel that you are not good at decision making, when you get profit or loss. Then you will realize about effects of trading psychology.
Impact of the trading psychology on trading:
Your judgment can be effected by your trading psychology while trading. Here are two emotions which effects or spoil the forex trader, such as fear and greed. Fear causes you not to make a trade when an opportunity comes. And greed causes you to make trade which is risky in order to get more profits.
Creating trading plan and sticking to it is the best way to prevent trouble with trading psychology. Learn about risk management and become a master in controlling your emotions.
The above information is about trading psychology which help you while trading.