Trading Tips #1 | Emotions and Psychology
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Trading is a profession that requires constant training and learning in many aspects. These branches that we need to learn in order to be successful are
- The technical type
- Of the fundamental type
- The psychological
- Emotional
Although it sounds very simple, the truth is that this profession requires our effort and dedication, of course almost any other branch of study, however, this must be practiced and be constant to reach the much desired profitability. Knowing all this, most people believe that entering into trading only needs to be an expert in technical or fundamental analysis and the reality is that when we enter the market, we put much more than money, we forget the great emotional and psychological burden involved in taking positions either by buying or selling an asset.
For this reason, we will be bringing you this section of trading tips, where we will cover essential aspects that, as investors or speculators, we need in order to correctly manage our risk and our positions in the market, all so that you can have at least the necessary learning for this task.
In this opportunity we bring you 7 very important trading tips to take into account:
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Peace of mind
Don't enter the market looking at what to buy or what to sell, have a clear idea of which instruments you want to trade. Don't trade on instinct but with the possibilities already clear and established.
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Patience
When entering your trades, define both take profit and take loss prices. And be patient, if you trust your analysis and no news has occurred that modifies it, trust your decisions and be patient until you reach the defined objectives.
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Step by step
There won't always be 100 USD profit trades in a single entry, it's better to make small trades, many times adding up to 100 USD in a certain period of time. That way you can slowly, sensibly and thoughtfully avoid taking so many risks.
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Choosing a small group of financial instruments
Focus on a small group of instruments that allows you to become familiar with them. Both on a technical level and from the news that moves these assets. The one that covers little, presses more.
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It's good to be able to listen to other traders' opinions, especially if they are more experienced than you, listen to their views and opinions about the markets, but with skepticism. Finally make your own decisions, based on your own analysis, always keeping a high degree of critical spirit.
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Training
Someone once told me: To learn how to invest, you always spend money! Either because you pay for a course to learn and/or because you don't pay for it and want it for free, but you lose your money until you have really learned! There are a few exceptions to this statement, but it is the norm. The first thing you should invest in is training, that way you can save some losses at the beginning.
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Rest
Do not stay 100% of the time in the markets, it is necessary to rest, because the breaks are also important. Whether you've made a profit of 1000 USD or 10 USD, it's advisable for the trader to go out of the market for a while, every chance he gets. The chances of losing increase more when your money is in than when it is out of the market.
At the moment we have reached the end of this publication, I hope that this section of trading tips will help you to be a better trader and that you can train as a trader in the short, medium and long term. We would like to read the community to know if they liked this section and it was helpful. We will gladly listen to all your comments.
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I remember trading based on my emotions some times ago on binary trading on the Iq option
I was not able to record any profit as my trade was just failing
Well perhaps I should blame it on my emotions
Greetings @mandate
I understand you perfectly, emotions in many occasions affect to a great extent the operations that you can take, it is for that reason that as a project we seek to educate the community based on finances and trading.
Your emotions can be controlled with a trading plan, but we need to work on it.
Erarium Project
Financial and educational community
@erarium