The Key to Calmness in Trading Psychology
Psychology in trading is an important point because having good psychology will result in good trades, and vice versa when having bad psychology will result in bad trades too. Trading psychology is a broad term that encompasses all the emotions and feelings a typical trader will encounter while in the market. Some of these emotions are actually useful and may be for traders to embrace, but others such as fear, greed, nervousness and anxiety should be avoided. Trading psychology is complex and takes time to fully master. Here are some keys to calm in trading psychology:
Use Capital According to Ability (Demo)
If traders do not have capital to trade, traders can use a demo account first. Many traders are in a hurry to immediately use a real account. This feeling of haste can damage trading psychology and will affect the results of the trades being carried out by traders. Using a demo account is nothing to be ashamed of. Practicing using a demo account also teaches traders good psychology. When you already have good psychology, traders can use real accounts.
Discipline
Discipline in trading is very necessary because it will also affect trading psychology. If the trader has prepared all the plans, it is very important to be disciplined about the plans made. If a trader violates one plan, it will have an impact on the plans of other traders. Always remember the goal of a trader in trading, which is to achieve consistent profits every day. In addition, time discipline is also very important, make sure the trader chooses the right time to execute and don't be too hasty.
Realistic
Determining a trading profit target is indeed difficult for a trader. The difficult thing is not to determine the amount, but the discipline to close the transaction if the profit target has been achieved. This often happens when the profit is reached, the trader feels pity to close the position, hoping for a bigger one. When the price reverses direction, all that's left is regret.
Determining profit targets that still require discipline and expertise. Often emotions beat the targets that have been set at the beginning. As a trader, you must set a profit target before starting trading. At least to be used as a benchmark although it doesn't have to be rigid to reach the specified number.
What else is the key to calm in trading psychology? Watch the video below.
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