Psychology of trading the markets
Asking anyone who has traded any financial market longer than 5 years if psychology plays a big role while trading ? A good 99 % will tell you that it is the key to survival !
Let us give you the key to successful trading any financial market:
||Just like any trade having the right tools is essential. Right tools - good internet connection, access to a trading platform with live data, understand of technical analysis, mental psychology and of course trading capital.|
|System / Planning
||Having a system to follow is essential to survive in the market. Please never place a trade unless you know first where your exit price and your entry price will be. |
|Money exposure / Control
||Never risk more than you can afford. Once you have depleted your trading capital the game is over. The whole idea is to take a trade by minimising the risk by protecting your capital and riding the winning open positions.|
||This applies to anything you wish to do in life. In the financial world having a positive psychology is essential. Stick to the plan and don't let market noise (intraday price movement) slap you around.|
If you cannot control your emotions, then your emotions will control you and your actions. When this happens, irrational decisions are made. Your not longer concentrating on your overall goal because your fighting to control your emotions fear and greed. From our experience you end up selling to early or buying too late !
Trading is 80% psychology and 20% work.