Psychology Affecting Individuals in Transactions
There are several determining factors in successful trading, namely personal traders. There are 4 psychologys that influence individuals in transactions:
Responsible for Trader's Capital
The first step as an individual is to believe in yourself and the trader's own abilities. The best way to get over the thought of using one's own money and the volume a trader will trade is to forget about money and talk about the bullet points.
So instead of calculating a trader's gains and losses in terms of dollars, talk about factors of profit and loss points. When trading a demo account, most people do very well. They trade fearlessly. But when traders trade with real money, even if it's just a mini account, traders suddenly find themselves trading in an attitude where the trader misses many opportunities and accumulates a lot of losses. Traders easily lose courage and fall into fear and greed. Try and trade without thinking about how much money the trader might gain or lose. Trade with the right mind, no matter how many contracts the trader trades or even if the trader trades on a demo account.
Reduce Trader's Losses Quickly and Let Trader's Profits Run
This simple concept is one of the most difficult concepts to implement and it causes death for most traders. Most traders violate a predetermined plan and take the profits of the previous trader to achieve the trader's profit target because the trader feels uncomfortable sitting in a profitable position.
Discipline
Make sure that the trader has a plan before the trader starts trading. The plan should include stop and limit levels for trading, just as a trader's analysis should include an expected lower limit and an expected upper limit.
Don't get too much information
Many traders start with simple and successful strategies, but traders try or change to find a better system. Traders also allow themselves to be influenced by other opinions and too many fundamentals. The rule here is to keep it simple, don't allow traders to get confused by too much information. And if the trader is unsure or not in good emotions and thoughts, do not make the trade.
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