Psychological tips for the weekend :In trading the creativity and the desire to take risks increase exponentially in periods of gain....... Generally this is not the case when your work hard and your invested time don’t draw the expected benefits....... Stress and taking uncalculated risks are often secondary effects of a series of bad trades.........(previously that was my big problem:annoyed
Professional traders know that losing is a part of trading profession....... Trading is not a “sure thing.” With this awareness, they do not hesitate to take their losses knowing that if they continue to take calculated risks, success will happen.......... The professional trader analyzes precisely the reasons for which he’ll open a position...............
Novice traders do not recognize that losses should be expected. After a loss they feel defeated.......... Generally, lack of knowledge and experience, the novice trader takes profits too early and losses too late.......... Then he would like to catch up as quickly as possible the amount of accumulated losses by increasing the leverage and by taking- risk........ He is convinced that if his trading technique generated gains in the past, there is no reason that it will not happen again. Negativity and overconfidence divert trader to a rigorous conduct needed to succeed in the long term trading, rational approach is the way to go.
How to react face to a loss?
If your trading plan has been respected and that the trade has failed, take a note in your trading journal, the market conditions and the reasons for which you have taken this position. Then switch to something else, it is important to forget about the loss and to be ready to trade. Once the trading session close , you can return to this trade. Your trading system should not admit perhaps all market conditions. If this is the case, you will need to identify the conditions that suits best to your system. Market trend, trading range, volatility level ….........
If the rules of your trading plan have not been respected, you must find out what is wrong in your trading. The problem is not your method but its application by the letter and therefore yourself. Identify the error in order not to repeat it. The most common problems faced by traders are psychological ones..........
Revenge (rajgreenpeace ka ye problem still remains)is a negative mindset that often occurs when you have a loss. Thoughtless and impulsive actions, taking not calculated risks, feeling almighty are the results of a revenge mentality . Instead to help you to get out of the abyss, they contribute to your financial decline.
Fear is often an impulse for revenge. Because of this fear you can take risks. This is often detrimental. During the recovery of financial loss, it is important to take calculated risks and think realistically. It takes time to recover a considerable loss. Do not make large transactions in a moment of panic. Work at a steady pace and reduce your leverage will allow you to reduce negative emotions in trading.
Stay optimistic, methodical, patient and realistic............Happy weekend to all...............:thumb::thumb::thumb::thumb:
Professional traders know that losing is a part of trading profession....... Trading is not a “sure thing.” With this awareness, they do not hesitate to take their losses knowing that if they continue to take calculated risks, success will happen.......... The professional trader analyzes precisely the reasons for which he’ll open a position...............
Novice traders do not recognize that losses should be expected. After a loss they feel defeated.......... Generally, lack of knowledge and experience, the novice trader takes profits too early and losses too late.......... Then he would like to catch up as quickly as possible the amount of accumulated losses by increasing the leverage and by taking- risk........ He is convinced that if his trading technique generated gains in the past, there is no reason that it will not happen again. Negativity and overconfidence divert trader to a rigorous conduct needed to succeed in the long term trading, rational approach is the way to go.
How to react face to a loss?
If your trading plan has been respected and that the trade has failed, take a note in your trading journal, the market conditions and the reasons for which you have taken this position. Then switch to something else, it is important to forget about the loss and to be ready to trade. Once the trading session close , you can return to this trade. Your trading system should not admit perhaps all market conditions. If this is the case, you will need to identify the conditions that suits best to your system. Market trend, trading range, volatility level ….........
If the rules of your trading plan have not been respected, you must find out what is wrong in your trading. The problem is not your method but its application by the letter and therefore yourself. Identify the error in order not to repeat it. The most common problems faced by traders are psychological ones..........
Revenge (rajgreenpeace ka ye problem still remains
)is a negative mindset that often occurs when you have a loss. Thoughtless and impulsive actions, taking not calculated risks, feeling almighty are the results of a revenge mentality . Instead to help you to get out of the abyss, they contribute to your financial decline.Fear is often an impulse for revenge. Because of this fear you can take risks. This is often detrimental. During the recovery of financial loss, it is important to take calculated risks and think realistically. It takes time to recover a considerable loss. Do not make large transactions in a moment of panic. Work at a steady pace and reduce your leverage will allow you to reduce negative emotions in trading.
Stay optimistic, methodical, patient and realistic............Happy weekend to all...............:thumb::thumb::thumb::thumb:
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