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Emotions

Money Management & Psychology 101SELF DEVELOPMENT/METHODOLOGY/PSYCHOLOGY Money Management/Psychology Cycle of Market Emotions The Upturn • Optimism: The normal financial specialist enters the market feeling hopeful. They may likewise have elevated requirements for the profits in which they are involved. • Excitement: When the market goes up, the desires begin to end up noticeably a reality and the financial specialist encounters commitment. • Thrill: The market proceeds up and the financial specialist is excited. • Euphoria: As the market achieves its peak, the financial specialist is euphoric and very certain that the market will proceed up. The Downturn • Anxiety: The market starts to plunge, producing sentiments of nervousness (Point 5). • Denial—The market keeps on falling, and the financial specialist experiences dissent with so many considerations as "It's alright, I'm in it for the long run," and "This is only a transitory misfortune," (Point 6). • Desperation and Panic—As the market cycles bring down still, sentiments of urgency and anger follow (Points 7 and 8, separately). • Surrender—Panic, in the long run, offers an approach to surrender when the financial specialist supposes "How might I have been so off-base? I cannot deal with being in the market anymore. I can't take any more misfortunes," (Point 9). The Bottom and the Recovery • Depression: While the financial specialist flounders in wretchedness (point 10), the market winds up in a sorry situation and offers a route to another bull. • Hope: As the market keeps on reinforcing, the financial specialist is confident that the market will proceed up (Point 11). • Relief: Once the market affirms it is in an uptrend, the speculator feels alleviation, however, they are as yet not sufficiently sure to contribute (Point 12). • Optimism: The financial specialist holds up until the point that they feel idealistic once more (Point 1 or frequently significantly later) before re-entering the market. As we portrayed over, this typically does not occur until the point that they have officially missed a huge bit of the up move, and their opportunity to recover misfortunes with it. Position Structure There are several trading software’s, which empowers the individuals to either structure or drive their framework by an individual or by position. Before the data is set-up in the control tables, an individual should choose which technique to utilise. The framework forms the data contrastingly relying upon the person’s decision. When the software is driven by an individual, work codes are utilised to arrange work information into gatherings. These codes are utilised to connect individual information to work information. When the software is driven by position, despite everything, work codes are utilised to make general gatherings or occupation arrangements in the association, for example, EEO (measure up to business opportunity) and pay review information.
Education
by SMPTrader
Trading Psychology Introduction to Trader Psychology There is evidence of technical analysis dating back to the 17th century. The candlestick charts most of use everyday to trade were created in the 18th century by a Japanese rice trader. By this point one would think technical analysis should result in more profitable traders and lead atleast a quarter of price technicians to a profit. However, this is not the case and in fact the opposite is true as most traders fail, even after years of studying price action. With this said, it is obvious learning how to read a price chart alone is not what leads to consistent profits. So what is it that seperates the very few succesful traders from the so many failures? Is it their strategy, their money managament skills, IQ, were they born with a different skill set than most, do they work harder than most, or are they just plain lucky? All of these sound plausible, but are they really the driving factor behind consistent profits? The short answer is no, none of the above. Perhaps we have been looking for the answer in the wrong place all along. In fact, most traders never even consider the possibility that it is their attitude or mental habits which prevent their success. What truely seperates the winners from the losers has nothing to do with external factors, but rather what goes on internally while observing and engaging the market, in other words; a traders mentality. "If the next bar is a bull follow through bar, the bulls have a 60% chance of making a profit. If the next bar is a bear bar that means....." Absolutely nothing! Unless you can structure a trade plan, and abide your plan as the market unfolds, without questioning yourself or your plan, and execute it flawlessly. Most beginning traders believe if they study harder and learn more setups, they will eventually become profitable. This is the fallacy of price action analysis. In fact, most economists and price analysts do not make good traders. Why? Because they form rigid rules and ideas as to what prices should or will do, and in turn fail to recognize and accept the "now opporutinty" the market is offering to traders who are open to all possibilities, including a lower probability event. Even more debilitating is the false belief that they can pick out winning trades, and avoid the losers, which leads to cherry picking through a traders edge. If the market spends most of its time with a probability between 40-60%, why is it so hard to generate a consistent profit? Understanding prices and their tendencies is only half the battle of becoming a Professional Trader. The other half and harder to develop, is the traders mindset. What makes a good trader is not only his knack for reading prices. It is the ability to flow with the market as it is unfolding, and the art of doing the right thing at the right time; without questioning himself. If the market is only offering X amount of profit, he takes it. If the market is unfolding in a way that he did not expect, he exits. He is willing to take a loss, and more importantly does not care what happens to "himself" in the market. He does not take it personally, and carries on throughout the day executing trade after trade. Continued...
Education
by tradersmentality
The dangers in listening to the newsI'm sharing a chart to give my sentiments about listening to the news. New traders especially tend to listen to the news and website opinions about where markets are heading. I show a bit on how I approached a particular situation on the US30. A lot of news is late and people who create news items or blogs have their own biases, based on the information they have. The news can be dangerous to trading as it can cause a trader to become apprehensive, doubtful and stay out of trade setups that may be quite sound for entry. News can be depressing and cause a trader anxiety. Some very important earthshaking news may be useful e.g. some major monetary policy change in Europe or America. But on the whole, listening to or reading news is fraught with problems. I've found that I make better decisions when I approach the markets with a kind of fearlessness described by Mark Douglas . The fearless state of mind is not 'recklessness'. It is about calmly making decisions and accepting risks in a reasonable way, based on a tested strategy. None of the above or the video is advice to traders.
FX:US30Education
by Captain_Walker
"One of those days"-- the art of "Locked out"Recently I participate in an analyst competition, and I got eliminated in the trading sections. Having an established trading system and strong mindset doesn't mean I make profit in every single trading days, as everyone would agree. That's why we need a daily risk ceiling, if hit, we don't trade anymore,which is called being "locked out". usually 6% (2% per trade basis) Being locked out is just one of those days, I would like to make so much profit every single trading day, so all I did in trading was finding opportunities that matches my trades before being locked out. While,in terms of frequency , basically 2 out of 5 trading days will be locked out as inside bars are not a strategy with high winning percentage. "One of those days" is what I will talk to myself to stay calm, but when a short-term intraday competition happen to be one of those days, that's when people will challenge your strategy or even trading ability, and that's pretty much offending to me, but the world will always focus on the result. Keep fighting and keep trading, do the proper risk management, and not being influenced by one of those days.
FX_IDC:XAUUSDEducation
by Trader_Joe_Lee
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