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Trading Psychology: How To Control Emotions While Trading


The Myth of Trading The Hollywood version of trading, where huge sums of money are made effortlessly by smiling traders in a matter of seconds, can often seem alien to anyone who trades for real. It’s also changed structurally too, with trading now making a huge impact online. It can be done from home, with the same results the Wall Street guys get being available to the guy sitting in his living room in his jeans.


The Trading Mindset Knowing how to manage your trading psychology and becoming a winning trader is vital. If you can’t take the pressure, you won’t get far. And this is true no matter what your trading strategies are. Your first step in gaining a trading mindset involves you, and mastering your own emotions. Once you step beyond yourself a little and look at trading objectively, you’ll have a better chance of surviving and thriving.


Trading Psychology Key Tips

➢ Do some deep research into the markets ➢ Do some research into successful traders too ➢ It is important to understand intraday trading psychology ➢ Losing money is OK ➢ The ‘afford to lose’ principle ➢ Loss Limit : If you aren’t including the correct use of loss limits in your trading psychology you’re facing real problems.


The Benefits of Technical Analysis

Technical analysis takes time though, and this is something that you need to be aware of. It will help your trading mindset if you’re able to put in the hours and understand technical analysis at a competent level. You don’t have to be a Soros, but you do need to know the basics.


Psychological Traps

➢ Fear of missing out (or FOMO). A common problem with inexperienced traders, and perhaps especially new day traders ➢ Pace yourself. If you’re doing really well one month and you’re taking a decent amount of money, don’t make the classic mistake of doubling trade amounts in the second month. ➢ The ‘good day’ trap is our last one. This is where you have an exceptional run of good trades and it feels like everything is going rosy.


About us The psychology of trading can affect even the best traders at times so reducing your risk by learning exceptional trading strategies and risk management is a must. Focus on managing your trading like a business, keep track of all trades and use sensible stop losses and you'll lay down the fundamentals to a lucrative career. At My Trading Skills we provides online financial trading courses for spread betting, forex and CFDs. Courses are for beginner, intermediate and advanced learners so you can enter the markets with all the knowledge you need to be a profitable trader. For more info, call us or visit our website.


Get in Touch With Us

My Trading Skills Phone no: +44 (0) 1428 738305 Email: support@mytradingskills.com Website:https://www.mytradingskills.com


How to control emotions while trading  

Knowing how to manage your trading psychology and becoming a winning trader is vital. Your first step in gaining a trading mindset involves...

How to control emotions while trading  

Knowing how to manage your trading psychology and becoming a winning trader is vital. Your first step in gaining a trading mindset involves...

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