December 14, 2017 at 9:11 am #1158
As a human we are born with emotions it is impossible for us to avoid emotions and walk like a zombie. If you think traders in the United Kingdom are emotionless you are wrong. The traders in the United Kingdom are not emotionless instead they don’t let the emotions to control you. If you gaze at a naïve trader you would understand that he or she is losing very soon and not long-lasting as a trader. According to studies, it shows that naïve traders are emotional when trading or investing in a financial market. They do not want to lose because it makes them fall mentally which is not a good sign. If you want to become a professional trader or an investor you should make sure to control your emotions. There are some naïve traders who lose due to being excited about trading or investing. No matter what the financial markets are unpredictable so many things may change in a way which you never expected so even such markets you should have the confidence to trade. More than confidence you should have the balanced mindset rather than being sad or over-excited. The bottom line is if you don’t control the emotions they will control you. So, now let us read the article to learn more.
Losing big amount of money
Majority of the traders have more winning trades then losing ones. But still they are losing money on the run. Do you know the exact reason behind this? This is only for the negative risk-reward ratio. Most retail traders are taking big loses and cutting their winners early with fear. Unlike the rookie traders the expert are always allowing their profitable traders to run long. They even use the trailing stop loss features to maximize their profit. So being a retail trader then first thing that you need to control is your emotion. Be prepare to embrace some losing trades and trade with proper money management. Instead of looking for big winners try to find good trade setups with the high risk-reward ratio. If you risk only one dollar then make sure that your winners will be two dollar worth. Aim for 1:2 risk reward ratio or higher to save your investment.
If you are excited, you are a loser
The exchange traded funds are quite simple compared to other funds and trades yet why do traders and investors fail? You might have the best plan, best strategy, best technique and best methods yet what is the use if you are getting excited when trading or investing? The major barrier the naïve traders face is that they are not aware of the ways to control their emotions. As traders and investors,you should bear one thing in mind if you want to establish a successful path in the financial market you should not become the salve of emotions. Of course, we do agree that it is pretty hard to control your emotions yet it is not impossible. You should make sure to train your mind to control the emotions if you do so you will be able to succeed like the pro traders and investors.
If you are undisciplined,you are a loser
The major factor you should bear in mind is that discipline. As a trader or an investor being disciplined in the financial market will enable you to control your emotions. When you become a disciplined trader or an investor it corrects all your other mistakes. Actually, the mindset of a trader or an investor is decided upon his or her behavior. So, discipline plays a major role.
If you control the emotions, you become a pro
Finally, if you are able to control your emotions you will be come a successful trader or an investor because it enables you to reach the maximum. You will be able to reach your capacity because you are neither afraid of the market nor excited.
You must be logged in to reply to this topic.