PSYCHOLOGY OF TRADING
Many times when we go into lost fear us wins and makes that we make many mistakes that is essential to work the psychological and emotional part. Technical analysis alone does not guarantee success in the trading must be to hand the psychological and emotional.
EMOTIONS INVOLVED WHEN IT COMES TO TRADING
- FEAR
The feeling of fear will be shown before, during and after an operation, the fear will do that do not want to take any risk.
You may have an open position and fear make you close it prematurely , when the position is in loss fear will push you to zippers to avoid losing more money when you keep it could turn around and generate profits.
You'll also be victim of fear and impatience If you make trading risk money that you can't afford to lose .
- GREED
The greed is a very strong emotion and is very usual, all in this world we want to always win more , with minimum effort and if soon better than better.
Greed it will cause you to take too many risks so, rather than help you get benefits you dejra many lost. Also pushes you to keep open positions benefits longer than necessary with the idea of winning even more.
Greed you will take more risk to get greater benefits.
TIPS TO IMPROVE OUR TRADING PSYCHOLOGY
Be objective with their goals.
The recognition of your own skills, positive and negative qualities will help the trader avoid failures. If we also add the ability for adequate evaluation of the psychological state and the behavior of the market, success will be guarantee.
Do not be greedy.
Operate a risk management system benefit that allows you to be more efficient in their operations and stop the greedy side of human beings.
Accept the loss.
You will not be able to become a successful trader until it is ready for victory and losses. Both are important and inseparable parts of the trading process. When the trader is not willing to face losses, in general, these become more frequent.
Greed and fear are a recipe for disaster in trading. Those kinds of emotions can bring about huge losses.
The key to success as you say is to accept that some trades just won't go in your favour. That's why it's important to trade without emotions, and to look to make small, consistent profits. That way, if and when things go wrong, you're not putting yourself in a terrible position.
agree with you
Greed is honestly probably the number one thing that will hurt you. I have been up a very nice amount and not taken profits from the trade. The reason is greed, you start seeing dollar signs and think your investment is going to keep going.
Great job......nice trading skills and i guess u should be teacher....
thanks a lot
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Greed is the main problem we are seeing in crypto. It makes sense though, imagine seeing 100-1000% annual returns in crypto compared to the usual 10% annual stock market return or 1% annual return on bonds haha. The only thing reaching MOON potential soon will be volatility!