Forex Blog

Steering Clear of the Trading Euphoria Trap and Preventing the Painful Fall

September 29, 2021 | 10:43 am | Forex Blog
September 29, 2021 | 10:43 am
Forex Blog
Steering Clear of the Trading Euphoria Trap and Preventing the Painful Fall

How to avoid the trading euphoria and a false sense of security when it comes to winning it big

Having a trade that is very successful isn’t always all it’s cracked up to be. It’s best to avoid the trading euphoria.

The downside of hitting it big every so often is that it may put you in a euphoric state of mind. This joy and confidence, while it sounds great on the surface, may actually make you overconfident about your next trade.


Visions of Grandeur

When you have a successful trade or a sequence of good trades, you might be inclined to start reviving your dreams of having greater and faster success. You’ll instantly feel you have what it takes to go forward and make it big as a professional.

This over the moon mindset will put a lot of future stress on yourself in order to keep up with the success you just made.

The truth is that for every sequence of success, there will be times where you won’t be on top. If you’re euphoric or building too much confidence due to past success, you could quickly fall into big-time disappointment.


Overconfidence is Highly Deceptive

Overconfidence due to past gains might soon lead you to make easier and less ideal entries into the market. When you’re riding high, you may have less consideration of all the information needed for your entry.

In instances like this, overconfidence leads to glaring mental blind spots when you’re not aware of all the hazards that are waiting out in front of you.


Temper Expectations

Don’t get us wrong, though, successful trading is great, and we should be happy and proud about it, but in order to maintain that success, we have to keep our awareness and not let the trading euphoria of success take over.

After a sequence of wins, we need to remind ourselves that we’re not here purely for success but rather to do the job. When we do our job well enough, success is the byproduct.

We go to work every day to get better and constantly improve our trading.


Ways to Cope with the Negative Side of Success

Success’s a byproduct

Success is not the goal. Rather it’s a byproduct of doing the right thing. Remember that even if you experience success and multiple winning sequences, you’re still dedicated and committed to doing your job well. Stay in the zone, and don’t be too enamored with success.

Highs and lows

Trading is always about highs and lows, winning and losing. You’ll have great times, but you’ll also have bad times. A sequence of winners will always eventually lead to a sequence of losers.

It’s the cold reality of the market and the profession.

Don’t bet your future

Another way to mentally prepare for potential trading euphoria is not to bet your future on periodical success. Otherwise, the fall will be hard and painful.

Stay humble and start from the hard, basic beginning. Even if you had a sequence of success in trade, don’t exaggerate with overconfidence. Don’t increase your position size just because you think it will lead to larger and larger profits.

Risk management

After a winning streak, there will be some losers. Your portfolio should be protected from these negative events. To do so, manage risk as though you didn’t experience a winning sequence. Risk management shouldn’t change even though you had a strong winning streak.

Open a Smaller Position Size

It might help to open a lower sized trade after a big win. This will work to assure you that you’re not suffering from overconfidence or “trading euphoria.” If you do this as part of your trading plan, you’ll be happy with your success while staying humble and not taking extra risk.

This also protects you from the overall maintenance of your portfolio. Staying humble and not getting greedy for higher and faster profits acts as a safety check for your hard-earned profits.

Don’t Brag

Try to limit showing off your success among your trading pals and community. Exceptional successful trading might put pressure on you from people who see your work. They’re not aware of your bad times and only see your good days. Don’t let yourself feel pressured by the community to perform at a level that you can’t always deliver.

Bread and butter

Bread and butter trading means consistently taking money from the market. It’s not always the best or perfect trade, rather the consistent, reliable ones. Big ones come once in a while, but our daily routine should be focused on making money from the market in a consistent way.

It’s not always going to be big and glamorous, but it’s what makes this a career, not a lottery jackpot.

Stay Consistent, Stay Profitable

Your monthly income relies on the day to day, not the big winners. Big winners are a bonus, and you should certainly enjoy them, but they are outliers and should not be relied on as the centerpiece of your trading strategy. Build a consistent approach that can sustain you from month to month, year to year. Be happy when you hit it big but know that real success comes from the daily grind.


In this webinar, Gil Ben Hur giving pro mental tools for achieving maximum performance in trading.



Right after a sequence of successes, or one big win trade, traders lose direction. They feel overconfident and fall into one of the most popular traps in Forex.

The trader feels self-confident, doesn’t use his trading plan, and now he is already in psychological dizziness, which might cause him to lose trade after trade.

Forex traders must understand that after great success, there is a trap waiting in the corner. Do not fall into it. Use the article’s tips, and keep the money in your pocket.

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