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Controlling emotions that hold you back

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Controlling emotions that hold you back


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So far, we've explored many different aspects of the financial markets and the techniques of trading. But there's one key component that affects the success of every trade you make, and that's you.

 

No matter how strong or level-headed you can be, you are a human being, so you have emotions. And naturally your feelings can influence your thinking and your behaviour as a trader.

 

Controlling emotions

Trading is an exciting and absorbing activity that can bring you moments of euphoria when things are going well, while equally it can be psychologically tough if markets turn against you. By understanding the emotions you're likely to experience at every point in the trading process, you can mentally prepare yourself to handle them effectively. That way, your feelings won't get in the way of your decision-making or harm your potential profits.

 

In this course, we'll look at some of the emotions you may need to deal with when you trade.

 

Anxiety and doubt

It's great to be cautious and considered in your trading, but if your worries are crippling you that's counter-productive.

 

The transition to a live trading account after using 'play' money in a demo environment is one step that worries some traders. It's a bit like doing a parachute jump: you've learned the theory and done all the preparation, but making that leap still takes courage.

 

Live and demo

There are, however, things you can do to make it a little less daunting:

 

Reflect on the lessons you learned while using the demo account

Apply the same strategies that brought you success in demo trades

Follow a trading plan

Start by trading in small sizes until you feel comfortable

Use risk-management tools, such as stop-losses

As long as you trade sensibly, use the skills and knowledge you've already gained and keep your positions modest, there's every reason to expect success. Of course you will make mistakes - we all do - but by managing risk carefully you'll minimise your losses.

 

Fear of loss

Another time that you might experience fear is when a position is moving against you and you begin to see a growing loss.

 

Example

Imagine you've bought EUR/USD because your analysis strongly suggests it's about to rise. You've considered the risk involved and set a stop-loss.

However, as time passes the currency pair seems to be stuck in a downtrend. It hasn't hit your stop, but the rise you predicted remains elusive. You start to feel nervous: should you close the position now and cut your losses? Should you adjust your stop closer?

Before taking any action, ask yourself:

Was my original analysis flawed?

Have circumstances affecting this market changed since I opened my trade?

Did I place my stop at the wrong level?

If everything suggests your original analysis is still valid, and if you've positioned your stop correctly to protect yourself against unacceptable loss, there's no reason to alter or kill your trade. Have confidence in your original judgment and let things play out - your loss could turn into a profit.

summary

Your emotional state can have a strong influence on the bottom line of your trading, so it's important to learn how to manage your feelings

Don't allow doubts and fears to paralyse you. Markets move swiftly, and hesitation can lead to missed opportunities

By following a plan, trading in small sizes and using risk management tools, you'll feel more secure and confident in your trading decisions

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Emotions are one of the biggest hurdles for traders and this is where we have to be extra careful with our approach. It’s not the easiest of things to manage but all very much doable. I find it a lot simpler using FreshForex broker, as they have lovely structure that I enjoy working through. It counts from their low spreads, to high leverages and then there is also my favourite cash back facility, it’s all nice and simple.

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Every trader must control what they feel during trading because it might affect the trade. Your feeling can change the trade and your analysis, what the market actually moving.

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In the productivity of your trades spreads has a vital part. I love the lower spread as a scalper and it is actually needed by almost all the Forex traders for making good money easily. The broker ForexOne I have mainly chosen due to their lower spread facility that they have from 0.4 pips and now I am able to make good money easily by doing the scalping trading style.

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When you can control your emotion at the time trading in Forex market you can develop your trading skills practically. Controlling emotions is one of the most difficult tasks since as a human being we all controlled by our mental emotions. But by trading with ForexOne trading broker I have learned how to control my emotions when trading in Forex by following their instructions. This broker always wants to help their clients.

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On 10/15/2019 at 11:08 PM, Leonardo said:

When you can control your emotion at the time trading in Forex market you can develop your trading skills practically. Controlling emotions is one of the most difficult tasks since as a human being we all controlled by our mental emotions. But by trading with trading broker I have learned how to control my emotions when trading in Forex by following their instructions. This broker always wants to help their clients.


the emotions must indeed be able to be controlled properly, this is necessary so that traders can be more leverage in surviving and be able to maximize in managing funds and risks in a real account to be a Tickmill trader of the month.

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On 10/26/2019 at 12:11 AM, pipdmt said:

I have been trading forex for almost 6 years now with , so far so good no complains at all. 

I prefer to run trading activities with Tickmill, because there are many benefits that I can get, so I can be more confident in carrying out trading activities and have the opportunity to become a trader of the month to get $ 1000 rewards.

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Looking for Success in trading is just like success in anything else its about taking small steps prepare your self start your day deligently for the whole day keep the routine for next day , emotions may hit very hard in trading business as it effects the traders decision a trader have to keep strong market observation and make right and on point decisions without any emotional pressure.

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