Trading Psychology
- Thread starter Esha.J
- Start date
Agreed!
Emotions, if not controlled, can hinder our trading performance.
Many skills are required for trading successfully in the financial markets. They include the abilities to evaluate a company's fundamentals and to determine the direction of a stock's trend. But neither of these technical skills is as important as the trader's mindset.
Containing emotion, thinking quickly, and exercising discipline are components of what we might call trading psychology.
Containing emotion, thinking quickly, and exercising discipline are components of what we might call trading psychology.
So true. Most of us dont even when emotions overpower us. We have to do full efforts to control our emotions for emerging profitable,else we wont be able to reach our goals.
Ninja Mobile Trader VPS
Sponsor
Ever wonder why your logic goes out the window when stressing over loses & end up compounding mistakes when you knew better?
I think it is because when a person is sitting at their computer all day staring at the chart, they become anxious and will start entering trades even if it does not fit their entry rules exactly.
There is electric impulse monitoring equipment you can buy that attaches to your body that monitors various signals. The result can be graphed and layered on top of a price chart, producing data on when you are more anxious.
From experience I've found that discretionary chart trading is hurt by trading all day because the long periods of waiting are likely to cause jumping into a trade that you shouldn't. If a manual method produces dozens of trading signals per day, then perhaps it would be better off automated. Otherwise, if you're only trading 1 or 2 times per day, then reducing trading hours is beneficial. Switching to trading on phone helps a lot too because can occasional check if the market is forming any patterns, instead of sitting at the computer all day feeling like wasting time.
I think it is because when a person is sitting at their computer all day staring at the chart, they become anxious and will start entering trades even if it does not fit their entry rules exactly.
There is electric impulse monitoring equipment you can buy that attaches to your body that monitors various signals. The result can be graphed and layered on top of a price chart, producing data on when you are more anxious.
From experience I've found that discretionary chart trading is hurt by trading all day because the long periods of waiting are likely to cause jumping into a trade that you shouldn't. If a manual method produces dozens of trading signals per day, then perhaps it would be better off automated. Otherwise, if you're only trading 1 or 2 times per day, then reducing trading hours is beneficial. Switching to trading on phone helps a lot too because can occasional check if the market is forming any patterns, instead of sitting at the computer all day feeling like wasting time.
There's a distinct possibility a trader who experiences emotional issues, it's because they are attempting an endeavour which is beyond their skill. An easy trap to fall into is believing (falsely) in your own competence.
Now an incompetent trader is not necessarily an incompetent person, rather it means they are attempting something which is pure and simple beyond them.
This 'beyond them' could mean their computer systems, data, algos, trading experience and comprehension is no match for myriad of other professions they are competing against.
What I noticed was this thread is in the forex forum.
A heads up, I've been in this trading game for decades and would never contemplate trading forex, it's too damn difficult imo compared to how I trade stocks.
My opinion, those retail guys trading forex at home who think they can become consistently profitable are trying to climb a large waterfall. Your emotions will be constantly hammered with failure.
Now an incompetent trader is not necessarily an incompetent person, rather it means they are attempting something which is pure and simple beyond them.
This 'beyond them' could mean their computer systems, data, algos, trading experience and comprehension is no match for myriad of other professions they are competing against.
What I noticed was this thread is in the forex forum.
A heads up, I've been in this trading game for decades and would never contemplate trading forex, it's too damn difficult imo compared to how I trade stocks.
My opinion, those retail guys trading forex at home who think they can become consistently profitable are trying to climb a large waterfall. Your emotions will be constantly hammered with failure.
Trading psychology is actually very important and most people just fail to acknowledge its importance.
