Keytool in Trading; Beat Your Emotions.
Updated
Guys, Do you know if we exclude strategy then the Main Difference between a Pro Trader and Beginner is Encountering Emotions! A Pro trader never let his emotions to control him; he controls the emotions.
On per request of traders in last "Psychological Issues Post" & messages for education post of overcoming emotions, I am sharing some points with you guys. Hope it will help new guys!
On per request of traders in last "Psychological Issues Post" & messages for education post of overcoming emotions, I am sharing some points with you guys. Hope it will help new guys!
Note
-Losses are part of trading. Do not get frustrated if you loss some trades. If you can't loss, you can't win. Emotions play important part in trading. So you must know how to overcome your emotions if you want to be a successful trader.
-A good trader should have winning attitude, never try to fix any situation negatively.
-Trade with your strategy and data analysis. Never trade with emotions.
-Two principal emotions that affect all traders mostly without exceptions are
1. Greed and 2. fear…
When the market is very volatile; those feelings can destroy your efforts; Leverage can also play a big role here…
-if you feel that your are a nervous trader, it is good for you to be a scalper, not a position trader targeting the long run.
It is hard for a scalper to trade the long term, it is good for a nervous trader to scalp some pips from the market and get out quickly from it…
Note
-The harmonization of Your trade plan with your personal trading strategy is a necessity; you must have a plan that clearly define your predictions.A trading plan must include your entering, monitoring, and exiting strategy. Also, it must define your target market to be prepared for any contingencies!
-The next step is to manage your emotion with profit and losses.
when you make profit from the market you will be excited to make more money, and if you make losses you will be stressed…
-Excitement and stress will influence your trading decisions. People hate losing money and most people regret missing opportunities to make money.
Then you will take wrong decisions!
-You should know that trading using demo accounts is entirely different from trading using real accounts…
When you’re trading Demo Account you can multiply your account TEN TIMES within a month, but when you're trading REAL ACCOUNT you will see in first
some trades you will make profit and after that you will keep on losing and blow your account. This is all because of EMOTIONS.
Main Points which can help you to minimize your fear.
1. Do money management; Believe & Relay on your working strategy, technical and other data.
2. Do not risk too much. If you are trading 1 lot, minimize it to the lowest lot which you are willing to lose happily without any regret.
Put proper Stop Loss and Take Profit leave it.
3. When you’ll do this 5-8 times and when you will see your maximum trades hitting profit then its time to Increase your lot size a little
(Do not increase your lot aggressively) and repeat the process.
This way you'll learn how to control your emotions and it will help you!
Note
Keep yourself calm and follow your trading rules.Note
Hope it will help you guys in trading. Good luck for future trades!
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