You probably started your trading business with the idea that you would soon have thousands of dollars in your account. You hope that one good deal will make you rich quickly and easily. And that you can turn a small amount of money into a lot of money.
Well, it’s fine if these are some of your thoughts. But don’t fall into the trap of opening a lot of trades just to make up for losses or make a lot of money in one day. This is a mistake that many people, not just beginners, make. Professionals sometimes do it, too.
These kinds of decisions are based on how people feel. Emotions keep telling you to get back into the market, even though you know it’s not a good time. So the question is, when is the best time to stop trading for today?
Enough for today. Psychology in trading
It can be tiring to spend a lot of time in front of the computer. It takes a lot of attention to watch how the prices move, wait for the signals from the indicators, and follow their own trades. And it’s hard to think clearly when you’re tired. Because of this, you need to learn how to say, “That’s enough for today.”
Emotions in trading
When you only care about making a lot of money, but you keep losing, you may feel frustrated, afraid, and anxious. But these feelings are not good guides. In the same way, being too greedy, too confident, too stubborn, or too excited won’t help your performance.
You should start by getting to know yourself. Know how you react and what your good and bad sides are. You won’t lose anything if you do this.
Create a trading plan
You won’t get rich in one day, as if by waving a magic wand. You need to make a good plan for trading and follow it. You have to get rid of your greed and be ready for slow progress. Change the plan as you go. You can’t always make deals that are good for you.
What will you do if you lose money on the deal? Will you think about it for a long time, or will you figure out what went wrong and move on?
A good trader takes advantage of trades that don’t work out. He looks at them and thinks of ways to improve the strategy for the future. Accept that bad things will happen. Find out what you can from them and keep going.
Do not overtrade
As I’ve already said, you should make a good plan for trading. You don’t have to spend the whole day at your desk. You don’t have to do a lot of transactions all at once.
Opening a position when the chances of winning are high is more important. And if you have a good plan, making just a few trades may be better than making too many.
Do not become a trading addict
Emotions are what cause addiction. Either you want to see how your money grows or you need to make up for losses right away. Both ways can cause you to lose control and put you at unnecessary risk of running out of money.
So, if you have a plan that says you should only spend two hours a day at the market, stick to it. When the time is up, stop and put it away until the next time.
In the trading business, it’s very important to know who you are. You can make the most of both your strengths and your weaknesses.
Hold your feelings in check. Do not trade when you can’t keep your mind on it.
Make a plan for trading and stick to it. Stop trading based on it, regardless of whether you win or lose. Tomorrow is another day.
Take advantage of the great thing that Pocket Option has to offer. It is called a free demo account and is rechargeable with virtual cash. Try a new approach there, test your strategy, and get to know indicators well before you move to the live Pocket Option account.
Share your thoughts on the psychology of trading in the comments. It’s at the bottom of the site.