Experts say that success in trading is all about having the right trading psychology and mindset rather than having apt knowledge and using the right strategies. Experienced and seasoned traders will tell you that it is all about using your brain in a proper manner, analyzing the options and making the most appropriate decisions. Psychology plays a pivotal role in the life of a trader and some even go to the extent of saying that emotions and psychology help you win 80% of the battle.
Even though you’ve been calm, poised and analytical in your personal life, don’t expect all these emotions to rule your mind when you’re on the trading floor. The stress and pressure that you will face are much greater than anything else. Let’s discuss the trading psychology that is not often dealt with.
Psychological obstacles to deal with while trading
A trader that has tasted success will implement trader’s psychology in the right way. Though you will find several articles all over the web in the form of YouTube videos and blog posts, ultimately they come down to greed, fear and the thought of losing. Read on to get an idea of how to control your mind.
Instances of greed and fear on the trading platform
There are different types of fears that grasp a trader while trading – fear of chasing trades which are not there, fear of missing on a trade, fear of earning profit too early, fear of losing all the accumulated profits, fear of losing your hard-earned dollars, fear of taking a wrong move, fear of taking too much risk or too big a position size and many others. The biggest fear among traders is to jump into trading without being educated on the ways of trading and without being ready enough to start trading.
How to overcome greed and fear and attain success
You have to work past such emotions by implementing a sense of probability in the market and it is only then that you can make a lucrative career in the trading field. You have to separate your emotions from the fluctuations of trading your money. When you have a plan ready for trading, you should have a tested mechanical strategy in place. Work on improving your discipline and patience and make trading a habit.
Program your subconscious mind subconscious mind
Are you sure about your trading skills? In case you’re not sure deep down within yourself, you shouldn’t go about trading just to test your skills. Not having a well-proven trading strategy will not prove to be profitable. Don’t self-sabotage. In order to become a profitable trader, educate yourself on the nuances of trading and start believing in yourself. A trading arena is a place for rat race where the successful stays and the not-so-successful withers away. So, try to retain your best form.
Unless you understand the intricate details of the trade, you won’t understand the importance and significance of random possibilities. Be confident and have faith in yourself.