Emotions are part of human nature. They may manifest as positive or negative feelings. Since a trader is first of all a human being, emotions can interfere during the trading. It is essential to learn how to handle them to prevent they constitute an obstacle to your success.
Negative emotions are a major cause of failure. The trader has feelings of fear, greed, self-destruction, etc.
Understanding how to manage these emotions is the key to achieving good profits. It is essential to learn to overcome failure, have a profound self-control and work with tenacity. The disappointments should not be an obstacle to your work.
When you close a trade successfully, you feel positive emotions, you’re happy. However, these same emotions can cause an excess of confidence in yourself, which can hinder the outcome of future trades.
Too much information can be harmful. Too many books, too many trading systems, too many indicators generate a lot of confusion and stress. If the stress level increases, there will be negative effects on your trading strategy. There is nothing wrong in seeking information, but it is much more important the way in which that information is used. Successful traders only take into account information that can help them to hone their trading system and which are not in conflict with their way of being.
You can use emotions in a positive way. To do this you must learn to control them and deepen the knowledge of yourself.
When you lose money you are disappointed, when you make a profit you are happy. This is normal because you are a human being. When you make a mistake, it is important to review the operation that caused the loss. The fear of making a mistake in the future can become an incentive to plan more carefully your strategies. If you can do this, you have achieved a good result, that will help you succeed in the future. A wrong attitude is to stay in a losing trade in the hope that the market will reverse the trend.
Negative emotions have a strong impact on your mind. They affect all mental processes and may represent an obstacle to the trading. If you are not happy and confident in yourself, you’ll likely take the wrong decisions.
It is essential to accept losses as part of the business, learn from them and try not to make the same mistake in the future. When you invest in the forex market, take occasional breaks to relax your mind. In this way is easier to forget the negative emotions and go back to being optimistic and confident in yourself. Also physical exercise is useful to eliminate accumulated stress. Listening to music is a good way to relax your mind and spirit. Forget the past and your failures, focus your mind on the new challenges. You cannot change the past, but you can change the present. The secret is to be confident about your skills.
It is important to get an adequate level of skills through the study of technical and fundamental analysis. The trading plan, the investment system and the strategy should be reviewed periodically. Be sure to follow all the steps and check the reasons why, sometimes, you do not follow the rules.
To avoid that stress increases, open only small positions until your profits become constant. Always learn from your mistakes and always behave like a winner.
Choose a strategy that suits you. There are hundreds of systems, but it is better to use one or, at most, two or three, depending on the market. Do not judge yourself. Replace negative thoughts with positive thoughts. Always keep control of yourself. Avoid the company of negative people, read books that put you in a good mood and think positive.
Being negative makes you inevitably lose money.
There are some people so-called self-destructive. They tend to minimize themselves and compromise, therefore, their future.
They have not their own way of being and follow the ideas of other people. They are often confused and full of contradictions.
Another form of self-destruction is hyperactivity. You undertake in too many projects in a superficial way, without having control of what you’re doing. You are too busy to pay attention to the results. This situation generates a permanent dissatisfaction.
Do not live in the present can be a very strong negative force. You are unable to focus your energy in the present because you think too much about the past, the opinions of others, the future. You have no control over what happens in your life. A large number of people is not able to carefully plan their activities. They waste time, money and energy. The trading system, in this case, it is inefficient.
Discipline is mistakenly seen by someone as something that is imposed by someone else. This idea is wrong. In forex trading, you are the only one who decide to follow certain rules. The lack of discipline is the root cause of your failure.
The skill of the trader must be built with proper training. The natural talent is a good starting point, but if you do not follow a serious course of study, sooner or later you will be overwhelmed by the forces of good and bad fortune. Growing professionally through a suitable learning is a must. Training and practice will make you a perfect trader.
from http://ift.tt/2h30hCQ
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