You are not logged in.

#1 05-04-2016 17:35:56

johnedward
Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 2881
Website

The right psychological mindset when trading

The right psychological mindset when trading


http://www.forex-central.net/img/logos/tradeo-logo.JPG


Article sponsored by Tradeo



Trading can be stressful and many different psychological factors come into play before and during a day in the market. Some of these factors can be very beneficial to the mind, but many of them can get in the way and ruin tradersí analyses.

Tradeo therefore suggests traders know themselves well and identify their feelings before starting their day in the forex market. Itís particularly important for traders to make a self assessment to know whether one or more of the following factors are influencing their decision making process.

How are these factors influencing you right now?

●    Emotions: Emotions are long lasting conscious experiences, and can directly affect a personís mind. While in essence a person can be a composite of many different emotions, identifying the strongest ones within you can make a big difference when trading. Among good emotions are: happiness, self-confidence, courage and even hope. Bad emotions include sadness, shame, fear, distrust and fear. Preparing oneself before trading is vital in order to think clearly and face the market.

●    Feelings: Contrary to emotions, feelings are passing and are often influenced by external factors. They can include stress, fatigue, sleepiness and even hunger (people make worse decisions when on an empty stomach). A calm, relaxed and well-rested mind is much more likely to succeed in the financial markets.

●    Illusion of profit (or greed): Sadly, this is one of the factors that are most dangerous to traders. Often, the illusion of profit due to a news piece makes people invest more than they planned, ignoring the possibility of loss of capital. Greed can cloud even the best traderís mind and be their downfall. Tradeo advises to always having in mind how much one is willing to lose and how much he expects to win and seldom go beyond these two values.

●    Inner fortitude: A person needs to be prepared to win or lose, no matter whether heís a beginner or an expert. Itís all part of the game and traders that donít have inner fortitude to continue or know when to stop will be beset by negative feelings and emotions described above. This can trigger a very painful cycle of losses. Therefore, itís important for every trader to make a decision to be at peace at all times and have both a plan for when profiting and a plan for when losing.

●    Other concerns and distractions: In order to trade properly, a person needs to have his mind focused on the market. While many other events can be important, such as a daughterís piano recital or grocery shopping, a single miscalculation in the Forex Market can put a lot to lose. Make sure your trading station is clear of distractions such as running children or people that have to come and go all the time. Even if itís difficult at first, Tradeo advises traders to operate only when they free their minds of other concerns.

In essence, emotions derive from the mind. While many of the emotions cannot be controlled, many of them can be harnessed to improve the decision making process in the Forex Market. Tradeo wishes everyone safe and responsible trading.

Arrow Free Tradeo demo account

http://www.forex-central.net/img/banners/TRADEO-728x90-bonus.gif


"Anything worth having is worth going for - all the way." - J.R. Ewing

Offline

 

#2 07-09-2020 11:21:16

Scarlett rose
Member
Registered: 12-04-2020
Posts: 16

Re: The right psychological mindset when trading

Trading psychology is different for every trader, as it is influenced by each individualís own emotions and pre-determined biases. Some of the emotions which impact trading are Happiness, Impatience, Anger, Fear, Pride.

Offline

 

Board footer