2021

TRADING
PSYCHOLOGY
TM

FOREIGN EXCHANGE MARKET

Written by Ravuluma Nduvho.

Contact details:+27729197620(whatsapp)
TABLE OF CONTENTS
About me
Disclaimer
Trading with purpose
Personality based decisions :Personality
:How do you become a successful trader
:Discipline
:Emotional stability
Trading decisions :Market overview
:Expectations
:Financial decisions
:Multiple accounts
Risk taking decisions :Mental conclusions
:Chart confirmations
:Following the masses
Managing your trading account :Risk management
:Trade management
:Money management
:Trading journal
:Risk reward ratio
Traits to develop as a trader :Pre-market review
:Week ending market review
:Trading plan review
Trading with emotions :Fear of missing a trade
:Fear of taking a trade
:Revenge trading
:Overconfidence
:Losses and drawdowns
:Overtrading
:Importance of having a trading plan
About me
My name is Ravuluma Nduvho founder of Recovery Trading Academy born in South Africa, I started my
trading journey few years ago as a part time trader but right now I’m a full time trader, my main
focus as a mentor or teacher is to provide more meaningful content about the foreign exchange
market which any upcoming trader can rely on to kick start their trading career.

Disclaimer
I’m not a financial advisor nor do I work for any registered financial institution, this part of the
business is fully written as an educational study material. This is not an easy to be in, bear that In
mind but with patience and understanding of what you are being told or being given as a tool to
succeed and you go out of way to follow that, you might make it, I hope this book carries meaningful
information for you to have a smooth journey to understanding forex trading, To whoever that’s going
to get an opportunity to study this book just know that I’m cheering for you, Good luck.
Trading with purpose
Why do you do what you do in life? You may think it’s not important to link your purpose as a trader to
your trading career but believe me working without a purpose in life is a short cut to failure because
somewhere down the line you will come across something that will ask more than you have
emotionally or financially which means now you are one step away from giving up, all because you are
working without a purpose, direction or goals in life so trading with a purpose is always a must,
outline your purpose when you join this business. Why are you here? What made you choose this path?
And wake up everyday to work towards that purpose.

PERSONALITY BASED DECISIONS

Personality
Understand what personality is all about, personality in simple definition it has to do with patterns of
thoughts, human behaviour and feelings which differentiate individuals amongst one another, all about
being unique
Now why did I include personality in this book? Here is why, remember personality is all about
combination of characteristics which results in an individual or human distinctive character, Now link
this up, character has to do with a certain trait or quality, having a good personality allows you to
develop good traits or qualities such as commitment, good work ethic which is what this business
actually needs in order to succeed
Developing good traits gives you an opportunity to balance the pressure as well as staying in control
of your day to day business just because you developed something new for a greater purpose
How do you become a successful trader
Becoming a good or excellent trader doesn’t happen overnight you need to grow patience and a great
flexible mindset, the foreign exchange market needs a hard worker, critical thinker as well as a
character that allows you to switch between certain things without being emotionally charged.
We have thousands of strategies to go for in this business so choose wisely and don’t block yourself
from learning something new everyday because as traders or mentors we understand the foreign
exchange market in a very different way but yet profitable so give yourself that great opportunity of
always being a student, that’s how you simply become a great trader, LEARNING

Discipline
Do you respect your money or trading account? No! You will forever remain a newbie in this business,
being disciplined is one of the best rewarding traits you can ever teach yourself as a trader, if you
respect your investment as well as the business you’re investing your capital In you are set to
becoming a fantastic trader
Have that high level of respect towards your capital as well as the decisions you take everyday about
your capital make sure they’re educated enough for those type of risks you will be taking as a trader,
be humble

Emotional stability
Wherever there’s money involved, the emotions are high that’s given but controlling your emotions
saves you from making unnecessary losses in the market, once you start taking trades based on
emotions you face high chances of either sabotaging yourself or missing great opportunities.
We’ll cover the whole emotions part in detail as we go on this is the most crucial part of the business
as it makes up 80% of the market

TRADING DECISIONS
Market overview
As I have mentioned already that we have many different strategies being used on daily basis in the
market this is what it leads to, we have the same chart on our devices but we are seeing different
things some are seeing buying opportunities while some are seeing selling opportunities, you are not
wrong if this happens to you just adapt if necessary or learn something different it’s legal.
Understand that some strategies are better compared to others in terms of reward ratio so my
advice to any trader either upcoming or advanced make sure to chase the best rewarding strategies
in the business, seeing different things at the same time is somehow an opportunity to learn.
Expectations
You don’t control the market, why do you expect the market to play by your book? Your price
predictions are not 100% so you must always expect to gain or lose that’s the reason why we have
the stoploss order to protect your trades because we don’t control the market, market makers own
this business and they will do anything they want just to see you in margin call.
Don’t expect the impossible always make sure that you are on the safe side because market
conditions change every second of the day. Don’t expect too much just protect your funds.
Financial decision
In this case we’ll look at personal as well as household decisions, as a trader with purpose you are
probably working towards insurances, mortgage plans, long term investment planning or even
retirement plans
Now all those things I mentioned above needs a good mind set in terms of decisions, you need to fully
understand the term saving while working towards such goals and make sure you can manage your
funds which will help you prepare for financial success with ease. Don’t misuse your money use it for
a good course.
Multiple accounts
As great as you are in terms of trading you need to have multiple accounts to manage your capital
wisely and reducing the high risk of losing almost all your savings
You need at least 3 trading accounts, one for long term investment, one for short term investment
then last account can be a scalping account
-Long investment account: Trade this account whenever there is a good opportunity in the market and
never make withdrawals regularly as it should be for high value assets such as houses.
-Short term investment: This account is on standby for household bills that you take care almost
every month end, this means you make withdrawals only when it’s time to take care of those bills
How you trade these two accounts should depend on what the market has given you, you can swing
trade these accounts or just take trades daily with daily targets
-Scalping account: This account is for all the minor things such as clothing, data etc which means you
can trade and withdraw from this account any moment of the day.

RISK TAKING DECISIONS

Mind conclusions
Trading requires a great skill to see or project what nobody sees, in not so many words what I mean
is that is that you need to work overtime to get those skills so you can avoid concluding the market
directions based on how you want the market to play out, it’s impossible remember when I said you
don’t control the market? Yes trade what you see not what you think
Always make sure that every trade you take is based on market confirmations
Chart confirmations
Chart confirmations are the same as trade confirmations, this is the last step you get to before taking
a trade. The necessity of chart confirmation is taking good trades and tackling this phase on your
trading career needs you to practice patience and backtesting the strategy of your choice so you can
raise your level of booking profit
Follow the right confirmations and avoid making up the confirmations in your mind it’s a very bad
move in forex trading.
Following the masses
Don’t follow what other traders are doing in most cases try by all means to be unique or move alone,
make your mistakes and learn from them until everything clicks in your mind then you do the right
thing.
Following what most traders are doing in this business is sometimes misleading, stop betraying your
goals, trading plans by going against them, relax and take your time making up the right decisions
about your trading career

MANAGING YOUR TRADING ACCOUNT

Risk management
Your level of risk management has to be determined by the capital on your trading account balance, if
you have a low balance understand that your progress will be slow compared to a progress of a
trader that has huge amount of capital as their balance, risk management means taking trades that
your account can handle if you experience drawdowns, Don’t over leverage your trading account
that’s sabotaging yourself
Let’s say you have a $100 account trading pairs, you have to outline the number of trades you are
going to take but in my academy the allowed number of trades is 2 per day with 0.01 lotsize with a
stoploss not far from entry point by 20 pips which means you are going to snipe those entries
If it happens that you end up losing those trades just stop trading for that day.
Trade management
This comes after you place positions where you have to protect your positions immediately after
entry, you have to place stop loss after entry, when you get in profits make sure you move your stop
loss to entry point which is now a locking phase. If the market makers switch targets this helps you
get out with profits even though it won’t be much.
Money management
Don’t trade because you have money in your trading account trade because you have a great
opportunity to do so, this also involves how you handle your money after withdrawals make sure
when you use your money it’s for a good course.
Trading journal
A trading journal is book or log that’s used to record trades already taken, this is a great way to stay
alert on how your trading is moving in terms of progress. Add this on your trading career so that you
can record your trades and save them so you can look back and evaluate yourself. This is a great way
to see where your trading career needs improvement.
Risk reward ratio
Experts say to increase a great chance of booking more profit in this business you have to at least
make 3 times what you are risking, if you give yourself a 3:1 risk reward ratio this means you have a
great chance in succeeding in the long run but for new traders 1:3 is a very good risk management
while the (1:1)_(1:2) are seen as very risky reward ratio.

TRAITS TO DEVELOP AS A TRADER

Pre-market review
Teach yourself that almost every Sunday before the market opens you visit your charts and prepare
yourself for the upcoming week to avoid those nasty surprises or fall for that crap called week
beginning false move, preparations are always a key to getting good results from the market. Spend
time with the market
Week ending market review
When it’s Friday and the market has to close make sure you have recorded your trading week in a
trading journal, this is where you have to reflect on those previous trades in case you need to
improve something in terms of trading
Make sure you do this almost every Friday it’s part of your job and to become more consistent in this
business this is the way, Do it!!
Trading plan review
In that process of preparing for the upcoming week you have to take a peak on your trading plan as
well to stay in track with your trades, go find that motivation again for the upcoming week.

TRADING WITH EMOTIONS

Fear of missing trades
95% of traders have gone through this phase and more upcoming traders are still going to go
through this phase, if you fail to understand and make peace with the fact that you won’t catch every
trade in the market you are setting a very dangerous trap for yourself as you will end up chasing the
market
Believe me it doesn’t always workout you will lose money over and over again in this business
because most of the trades you will chase in the market are stophunts specially designed for you to
chase them so the institutions can turn your trading account into a blood river
Don’t chase trades there are more great opportunities to come missing one trade is not bad unless
you’re trading emotionally which is bad.
Fear of taking a trade
Lack of knowledge, lack of practice, cutting corners leads to lack of confidence and doubts about your
analysis, the reason why you get scared to take a trade is because you jumped stages while learning.
Not following all the steps accordingly will cost you
Being afraid of putting your money on the line is also one of the reasons why traders don’t want to
take trades, this is a risky business that you only make money if you risk your account so how will you
get that reward if you didn’t risk anything? Take those risks that’s the only way to succeed but those
risks should be based on good knowledge and confirmed analysis.
Revenge trading
‘’it took me a whole year to stop this and I lost a lot of money’’
This is the quickest way to sabotage your trading career it’s like shooting yourself on the foot and
expect to finish first on the race, once you experience losses in the market stop trading for that day
you will see the charts the following day
Going back to hunt a trade is always a recipe to failure because you are going to force trades or
conclude the cycles without any market confirmations, remember you don’t control the market so
what makes you think revenge is a good way to make up your losses? Don’t do that to yourself accept
the losses and move on
Overconfidence
As traders we are competing against ourselves and other traders, we all want to be ranked the best
trader which affects our confidence and judgement.
Once you become overconfident as a trader you start to convince yourself that you have everything
figured out and you don’t have anything new to learn about the market. Being overconfident is danger
to your account because most overconfident traders they either place too many trades with high
lotsizes which they end up over leveraging their accounts
Sometimes they trade in and out which if they experience a drawdown it wipes all their capital,
overcoming this you need a very good risk management plan which will tell you how many trades
you’re going to take per day
Do take breaks from trading once in a while
Losses and drawdowns
Winners are not people who don’t take losses in life, winners are those who see great progress in
failures because they carry one of the greatest lessons that no man on earth can offer, take losses
like a champ you will grow like a champ in this business, once you understand that losses are part of
this business you are one step closer to making it.
Drawdowns are part of trading, don’t expect every trade to run straight to profit immediately after
entry no, it doesn’t work like that and it won’t happen everyday so whenever you place positions make
sure your risk management will allow your trading account to survive the drawdown before going to
your projected direction
Overtrading
We blow accounts because we don’t know when it’s enough for a day, when trading you need to have a
daily limit which once you achieve you are done for the day, just because the market is still going your
direction doesn’t mean you must re-enter no you are done close the platform you will see the charts
the following day.
Importance of trading plan
Risk management, goal setting, emotions, daily targets all have to be fully outlined in this phase,
outline all those trades you will take, outline the risk management to taking those trades, why are you
in this business
A trading plan is important as it reminds you all the purposes or goals you have set for yourself as a
trader as well as how you are going to achieve them. Make sure that you stick to it as hard as it may
be because I will help achieve a lot in this business
In terms of psychology training this is what Recovery Trading Academy had in store for you, we have
never met or exchange words but congratulations for starting, I wish I could get feedback from each
and everyone who will use this book unfortunately it won’t be possible
From me to you this is my prayer, you are good, great and capable you can do this don’t quit!!! You will
make it
Have a great journey in this business! I’m out

Keep in mind
KNOWLEDGE IS GOLD!!