The most common reason why people plummet to the end of their forex trading is due to emotional instability. Forex trading in reality is all about how well you can control your emotions.
Mastering your fear, hesitation, anxiety, impatience, curbing down your greed and over confidence, this is all what any trading decision is based upon. It might be surprising, but a large percentage of people, struggle with the most basic step in trading forex, why? Because they downplay its importance. Being emotionally stable and in control of your emotions, is often overlooked because everything else seems much more important: profits, losses, risks, strategies, trading plan.
Here are some of the ways which help you trade better:
- Be consistent.
- Do not lose faith in your strategy.
- Have a risk management strategy.
- Don’t switch strategies.
- Have a strong trading plan.
- Take a break.
- Learn to control your emotions.
- Don not revenge-trade.
These are the 5 emotions you often feel while trading and how you may react to your trading
- Happiness – underestimate the risks
- Fear – we fail to act (inertia)
- Anger – Overreact (Revenge)
- Sadness – risk averse
- Greed – Take bigger risks
If you cannot control your emotions during your trading you may react in a way which breaches your trading plan. This is extremely important as this is one of the biggest factors a lot of traders face while trading.
Thanks for taking the time to read my post
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