To be successful in trading there are two fundamental factors that depend directly on you: The first factor is the knowledge and experience that is achieved with dedication and a lot of practice.
The second factor, which we will focus on in this article, is in your mind with your attitude and with the proper control of your emotions.
The road to success in trading is not different in many other facets of your life, for example if you practice a sport, in addition to many hours of practice is essential a good psychological and mental preparation to deal with opportunities, sacrifices, obstacles , victories, failures.
The psychology of trading is vital for any beginner, who must develop his own investment strategy while learning to deal with these emotional factors.
But it is also for professional traders who must remain psychologically strong and not lose discipline to be consistent and profitable for years.
What are the main emotions we face when trading with plus500 broker?
Fear will make you not want to take any risk in your operation. It acts in two ways.
You may see an opportunity to negotiate but fear does not allow you to open any position and therefore you will lose it.
Greed is a very common emotion. Virtually everyone wants to earn more and more, with the least possible effort and if it is sooner rather than better.
Greed will cause you to negotiate in excess and take too many risks so, instead of helping you to get benefits; it will end your trading account.
What are the keys to success?
- Appropriately deal with losing operations
When most traders fall into a losing streak of losing trades tend to blame themselves and try to change strategy.
They believe that these losses occur because there is something they have done wrong or that their system is not good.
You must develop your tolerance for error, avoid fear and accept losses as part of learning and the path to becoming a profitable trader.
- Facing the winning operations properly
A few winning positions can go to your head and convince yourself that your trading system is infallible, that you are a crack in trading, that you have a gift for this or that you are immune to losses.
- Think positively
Positive thinking works. When you think positive and follow your trading strategy you will get more successful operations.
On the other hand, if your thoughts are negative, they will drag you to commit many more mistakes.
You will fall prey to fear or anger and can hardly learn, analyze or act objectively in that state.