The Psychology Behind A Price Rally

The Thinking Behind A Rally In Price

These days you can see excited and euphoric traders in twitter, forums and everywhere in the web talking about rallies, big profits and about the dream of making a ‘killing’ from joining the long-lasting trends you can witness these days. The truth is, traders join trends too late and miss the exit just to see their profits evaporate and being left with nothing, but the clueless perplexity how they managed to lose money over a several thousand pip rally.

The following price chart illustrates the different phases and stages the average trader undergoes during a price rally.