There are several things that can damage one's psychology in trading forex, including:
Emotions: Forex trading can be a highly emotional experience, and emotions such as fear, greed, and anxiety can cloud judgment and lead to poor decision-making. It is important to manage emotions and stick to a solid trading plan.
Lack of discipline: Without discipline, traders may fail to follow their trading plan, take unnecessary risks, and make impulsive decisions. Developing discipline takes time and effort, but it is crucial for successful trading.
Overconfidence: Overconfidence can lead traders to take on too much risk or ignore warning signs, ultimately leading to significant losses. It is important to maintain a healthy level of skepticism and regularly reassess one's trading strategy.
Lack of knowledge: Lack of knowledge and understanding of forex trading can lead to poor decision-making and costly mistakes. Traders should continually educate themselves and stay up to date on market trends and news.