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Basics of trading psychology: advices for beginners
 Both the beginners and experienced traders should study the psychology to avoid uncontrolled actions and improve their strategy. Practical information about trading psychology. 16.Jul.17 9:52 PM By sdg-trade Photo Toinnov.com |
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Keeping self-control is a significant side of good trading. Our worst enemy on market is own fear. Unfortunately, many traders underestimate the necessity of learning psychology. Of course, skills to understand how the market works and how you should analyze it are required. But the key skill is a capability to regulate your emotions and keep discipline. Let’s spell it out. Trader often should make lightning quick decisions. They need discipline and common sense to follow the trading plans and exactly know when buy-sell something or stay hand. Emotions mustn’t interrupt you. How to deal with fear? When the shares are descending or you find out alarming news about the deal, you mustn`t give in to emotions. You will likely fell panic and will eliminate your saving and go to cash or to refrain from taking any risks. Then, if you do that you may avoid certain losses - but you also may miss out the benefits. Fear is our natural reaction. Just think about your feelings when you are scared and how you can resist it. If you thoroughly plan all your actions, you’ll be self-controlled during the trading action, and it isn’t so easy as you imagine. Say NO to your greed Always remember about the discipline. Many investors stay on profitable attitude too long and try to receive last tick. It can be a destructive feature because of the risk to get whipsawed or lose a position ultimately. Consider your plan despite the any facts. You can create own rules. Select the amount that you can lose in the interval of a certain time. For example, a limit for a week. If the week is not over, and you have already lost the allowable amount today, do not invest until next week. Clearly follow the rules of your strategy. Furthermore, write it on paper and hang it somewhere near the monitor. Also, it’s important to analyze each deal. Keep your trading diary and write everything that you do on the market and what does it lead to. It will tell you a lot about yourself and will help understand the reasons of many events. Inference It is so easy to say that you should control your emotions, be motivated and have patience despite the any facts. But it is really hard on practice. You should be concentrated and ready for actions in the important moment. How many unnecessary deals can be made because of the emotional pressure. Both the beginners and experienced traders should study the psychology to avoid uncontrolled actions and improve their strategy. Get practical lessons from SDG Trade company and feel more confident. Our company also provide regular briefings and reviews of deals. You may open an account in SDG-Trade company with reasonable commission and get regular personal consultation from skilled traders. Learn different free educational programs on our website to have multipurpose knowledge about trading on the stock market. Fill in the form on website and receive all helpful information after registration. | |
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