Hope you all are doing well and good and enjoying the best days of your life. This is me @shahid2030 from Pakistan and you are here reading my post. You all are welcome here from the core of my heart.

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This is my participation in a contest Mastering Trading Psychology: Emotional Discipline in Cryptocurrency Markets organized in SteemitCryptoAcademy by @crypto-academy .

Emotional triggers play a very crucial role in trading. Being a trader I must confess that controlling emotions in trading are more important than even mastering technical and fundamental analysis. Wrong emotions often lead to irrational decisions that can negatively impact performance.

Let's talk about the well known Emotional Trigger in trading

Fear

As it's name indicates fear of lost in trading. This is the first stage of emotions which badly effect the trading strategies and mechanisms of mostly traders. I believe it's the most dominant one too, because even in very small business people are afraid of losing money, while trading is too much risky business ofcourse it gives a person more pressure and stress.

How the feeling of fear arises during trading ?

Let's suppose you open a trade and after a few minutes you see it goes in lost. Maybe this is a perfect trade, but the feeling of fear will compell you to close your trade and you will get exist from the market in wrong place. Maybe the market get recover from that position and your TP will get hit according to your analysis. Here through the hands of fear you lost a winning trade.

Example Few days ago I went for long on XRP at $2.1, but we saw a red bath that day. In fear I close my trade at $2, because I thought market will get dump from here, though my analysis said that it will must go toward $2.7. I have closed my trade and yesterday XRP went to $2.8 level. I have lost a winning trade because of fear.

FOMO This is another case of fear, where a trader fear that he has missed a golden opportunity of making profit. Due to this reason he takes entery in wrong position at high prices.

GREED

Greed in trading often refer to a term, where a trader wishes for more profit completely ignoring the existence of risk. It actually holding of a winning trade for too long, hoping for higher returns. Here a person doesn't satisfied with his Profit he made and it results in lost after the market gets reversal on him.

Sometimes some trades use over leverage or they do over trading to do more earning in short time, which result in a tragic lost.

Example I was trading on THE few days ago. My trade was in profit of almost $17. I didn't close it because my target was $34 (Tp1). I should placed my stoploss at entry point, but it had touched my entry point many times. It was greed in my mind not to put stoploss here because I wanted $34 profit. My trade in previous day correction hitted stoploss of $22. It happened to me just because of greed.

Overconfidence

Here the trader believe on himself completely ignoring other factors of the market. It occurs when traders overestimate their knowledge or abilities, often after a series of successful trades. Sometimes he believes completely on his technical analysis and other knowledge about market, completely ignoring other fundamentals.

Such traders trade in a volatile market which is highly risky and they come up with huge Lost. They use high leverage, because they are too much confident on their analysis.

A successful trader must need to trade on very free and fresh mind. He should cops up with all these psychological barriers. In my 5 years of experience here in trading I have learned one thing that, the one having strong trading psychology is the most successful trader. Wrong psychology never let you use your own learning and experience.

Fear of missing out (FOMO).

Fear of missing out, in trading we use the word FOMO for it means, you become greedy seeing the market going too much bullish and want to make profit out of here. Instead of taking entery at dip you take entery at peak. It results in significant lost, because at peak everyone sell their commodity and those with wrong entry got stuck and have great lost.

How to overcome it ?

Don't ever trade in any crypto currency you think you missed it's perfect entry. Wrong entry have 99% chances that it will give you lose.

Loss aversion

Those who trade without stoploss come up with such a problem, and I have seen too many people who don't use stoploss are liquidated. They wash their account aiming their lost will get recovered.

How to overcome it ?

The best strategy for it is to use stoploss and follow your own strategy and get stick to it. Respect all the technical levels and put stoploss and take profit according to it.

Overconfidence

Little knowledge will makes you overconfident and proper knowledge will makes confident. Learn only those things which you think are accurate and you can use for your trading. Read the market thoroughly and make decisions according to the situation.

How to overcome it ?

Combine technical analysis along with fundamental analysis. Read the market from every dimensions.

For example if you see BTC is dumping badly you go for a long position on STEEM, claiming your technical analysis says STEEM will goes up, their are 95% chances you will loss your trade. The reason is, all crypto currencies move in direction with Bitcoin.So best thing you can do here avoid trading on STEEM unless the market regain it's position.

General advice how to overcome psychological barriers in trading.

• Always use proper stop loss, take profit and try to avoid high leverage.
• Make your own strategy and stick to it until your trade finish.
• Must do complete study and research of the market before entering to any trade.
• Knowledge will give you confidence.
• Do practice more and examine yourself as practice makes a man perfect.
• notice and compare your progress with your past performances( previous month), any progress will give you too much confidence.

It depends on trader, which routine he is comfortable in. He is a day trader, mid term trader or long term trader. Now daily trading we include in day trading and weekly we put in long term trading. Both needs different mindset, psychology and market tactics. Let me explain the best techniques for both daily and weekly trading.

Daily Trading Routine

In daily trading routine our goal is to get the result from our trade in hours, like 3 hours, 4 or maximum upto 12 hours, not more than that. We use 15 minutes time frame for it. Intraday traders deal with what is the current situation of the market. They don't have any business with the previous week or months market statistics.

Weekly Trading Routine

Weekly Trading is something different than that of intraday trading. It's needs 4 hours and daily time frame. Daily for finding the trend and 4 hour for taking entry or confirmation. One more thing that in Weekly Trading you have to cover all the aspects of the market; fundamentals, News, previous market statistics, up coming events and activities and many other.

Let me share my own trading experience, where emotions led me to a significant trading mistake. Sometimes it resulted in lost in some time I missed huge profit opportunity.

Mistake from my practical life
Few months ago I have bought SOLANA at $30. In my mind I wanted to hold it for long time. After few minutes I saw it touched $32. It made me greedy I saw the instant profit and got exist from my trade. I sold SOL at $32, and we never saw it back at that price. Currently SOL is trading at $209 with it's all time high at $263. It's greed which manipulated me and I missed a profit of almost 8x.

SECOND MISTAKEwas at the time of LUNA crash. LUNA was trading at $100 and after few days I saw at $30. I'm hurry without any research I bought it at $30. I crashed to $0.000003 in few days. It was actually FOMO I thought I will miss LUNA and it will go to $100 again. It took all my capital.

These are the mistakes from my personal trading life, and behind every mistake their is wrong emotions, wrong trading psychology. Their is lack of research and knowledge behind every mistake.

how emotional discipline could have prevented the loss ?

Discipline is the far most important thing in trading. Emotional control is the key to become a successful trader. Look from the above example you may see behind every mistake their is a wrong emotion or wrong trading psychology.

Let me give example how good psychology helps you if you follow it. I have bought DOT at $4. It came down to $3.5 and I bought it again. Now in this bull run it went to $11.7 which is almost 3x of my investment. I didn't sell it because my target is far above than this point. I have done complete research on this project and I can see huge potential in it.

Currently it's trading again at $7.6 but I am not selling it. I believe it's price is consolidating and soon we will see a huge rally in it's price.

Another example is of SUSHI. I bought it at $0.5 after a complete research. Now it's trading at $1.8 and it went to $2.8. It has a too much limited supply of 262 million coins which is a valid reason why we can see it's price above $10.

If I am in profit it's just because of discipline and proper research. I was investing that time market was extremely bearish with too much fear, but I controled my emotion, I didn't fear of losing money and finally I get it's fruits now.

Trading in volatile markets is obviously stressful, but their are many ways you may cope up with it using them. Building mental resilience ensures you stay focused and make rational decisions. The more easy you feel while trading, the more good it would be for you. You will get a quite satisfying result.

However, their is one thing I suggest to every trader is try to avoid volatile market. Volatility hit your trading psychology badly, because you have to compromise your own technique and trading style.

FOR EXAMPLE you open your trade and it gives you good profit just in few seconds, because of volatility I am pretty sure you will close your trade without reaching your aimed target. You will fear of market coming back and your Profit will get zero again. Same could be result in lost situation. You may close your trade without hitting stoploss if market give you enough lose just in few seconds because of volatility.

how to build mental resilience to handle high-stress trading environments

• Gaining of proper and authentic knowledge. Learn technical and fundamental analysis at your finger tips.
• Make your own strategy and remain focus and stick to it. For example if you are good at Intraday trading remain focus to it, and if you good at long term trading stick to it.
• Make your own trading room and you must have a proper time table for trading. Always try to trade with easy and cool mind.
• You should have limit of trading. For example keep a $50 profit target per day, and if you lose 3 trades continuously avoid trading that day.
• Follow a mentor you think he has more experience and knowledge than you.
• Don't believe of false News, Example FOMO and FUD.

These are the factors that can make a good trading psychology of an individual.

This is all about my blog for today, hope you guys have enjoyed reading it. See you soon with a new amazing and interesting topic, till take care.