12 Philosophy of Trading Psychology

Trading psychology is a decision in making transactions that is influenced by mental, thought and behavior. Psychology that will affect a person's way of thinking at the time of decision making.

Knowledge of a trader will not only stop at the analysis, but must be equipped with mental readiness. Therefore, there is a term called trading psychology. This trading psychology will affect a person's way of thinking which is then carried out with behavior in making decisions. If the trader is not prepared to have a frantic mind, then the transaction could be a decision that was taken incorrectly. In fact, it is possible that traders will experience losses. Vice versa, with positive and calm thinking, the trader will get the right decision and can even make a profit.

The psychological aspect of trading is an emotional component of a trader's decision-making process that can help explain some decisions seem more rational than others. It could be said, trading psychology is also an emotion that arises in a trader when carrying out trading activities as a reaction to the trading results of traders who are either losing or lucky.

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