Printable View
Psychology is the battlefield where traders lose or win.It is not so much about how good your strategy is, but about how you handle losses or unexpected profits.If you can master your emotions, you will be in a much better position than most traders.Sometimes, just knowing when not operating is what keeps you in the game in the long term.
I am really interested in learning about trading psychology.I have read that controlling emotions is one of the keys to being a successful trader, but it is not easy when you are losing money.Does anyone have any advice on how to keep calm?
Trading psychology is the most difficult to dominate, no doubt.Everyone thinks it is a matter of strategy, but when the market goes against you, your mind is your worst enemy.My advice: creates a solid trading plan and follow it to the letter, no matter what you feel.
It is easy to say "keep calm" when you don't have real money at stake.The truth is that, when you start losing, the pressure is huge.But if you have a clear strategy and understand that losses are part of the process, it is easier to maintain composure.
They are right.Whenever I lose, I feel the need to "recover everything" in the following operation, and that only leads me to more losses.I think the key is to learn to accept losses and not act by impulse.
Exactly, you have to accept what to lose is part of the game.If you enter an operation thinking about how much you can lose instead of how much you can win, you are in the right mentality.Protect your capital and the profits will come.
If you find it hard to control emotions, it may be useful to use an automated system or an EA.In this way, you eliminate the emotional component and let the decisions make the system based on rules.It is not for everyone, but it can help.
I had never considered using an EA, but maybe it's a good idea to reduce impulsive decisions.Do you recommend any automated system that is good for beginners?
I am not a fan of automated systems.In the end, you depend too much on them and do not develop your skills as a trader.Learn to control your emotions for yourself, without delegating that responsibility in software.
The problem with the EAS is that they only follow rules, but the market does not always follow the same rules.They may help you eliminate emotions, but they will not teach you to adapt to the changing conditions of the market.Do not use them like a crutch.