At Finance Magnates Africa Summit (FMAS:25), a panel of ATFX executives from Africa and the Middle East gathered for a discussion titled “Trading Psychology vs Strategy” to discuss the key factors driving success in trading. The session debated whether well-researched strategies or psychological resilience have a greater impact on trading outcomes.
The panel included Hormoz Faryar, Managing Director of ATFX Connect, MENA, who served as moderator, alongside Linton White, Regional Head of ATFX Africa; Gavin Hendrikse, Sales Manager, ATFX Africa; and Caleb Martin, Sales Manager, ATFX Africa.
Strategy Needs Psychology to Work Effectively
The discussion emphasized that while strategy provides a market approach, the psychological factors shape how traders act under pressure.
“Strategy is your approach to the markets, but psychology is about you,” the panel stated. “It’s your goals, your fears, your habits—everything that defines how you interpret the market under pressure.”
It was also highlighted that “You can't really have one without the other.” While strategies are often data-driven, psychology governs the ability to consistently execute those strategies, particularly in volatile markets.
The influence of unconscious mental frameworks was raised: “Depending on whether you like Donald Trump or not, you might trade gold or the euro differently without even realizing it.”
Social Media Spurs Gold Trading Frenzy
The panel observed a shift among African retail traders toward gold trading, driven largely by its volatility. “It’s the volatility . Traders want fast results, and gold feels like the shortcut.”
Social media’s role was noted as a strong psychological driver. “A TikTok goes viral about gold, and suddenly everyone wants in,” was remarked. “The herd mentality kicks in, and that’s psychology steering strategy, not the other way around.”
A personal account illustrated the risks of emotional trading. After a serious illness and while on morphine, trading performance initially improved—possibly due to relaxation—but returning to normal conditions led to the biggest loss of a career. “I ignored my checklist. I traded against my own rules. It cost me what could’ve bought a few homes.”
The danger of overconfidence was underlined: “Even five good trades in a row can be dangerous. You start thinking you’re invincible.”
Algorithms Shape Trends, Not Trade Quality
Automation and artificial intelligence were also addressed. “More clients are leaning on bots and AI to remove the human element,” it was noted. “Psychology, especially when negative, is the biggest threat to consistency.”
The dual nature of social media as both resource and risk was discussed: “You start seeing gold everywhere not because it’s the best trade—but because the algorithm says so.”
Audience questions added depth. Regarding managing losses, advice was given to use a trading checklist that includes personal mood: “If I’ve had a bad conversation or stepped on my wife’s heel in the morning, I might not trade that day.”
Emotional Discipline Beats Complex Trading Strategy
On whether trading psychology is innate or learned, it was compared to sports: “Some are naturals like Messi. Others, like Ronaldo, grind it out. The key is knowing your journey and sticking to your pace.”
From a psychological point of view, it is noted: “People have a money personality. And most aren’t prepared for loss. That’s where the psychological upheaval begins.”
The panel concluded that emotional discipline can outweigh strategy complexity. Even simple strategies, when applied consistently, can yield long-term success. As retail traders increasingly respond to social media trends and volatile assets, understanding one’s psychology becomes paramount.
“Losses are lessons,” the discussion closed. “The real win is staying consistent—even when the market, or your mind, tells you otherwise.”
