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Peculiarities of psychology in stock trading

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Dozens of books from classics and trading gurus have been read. Techniques of technical and fundamental analysis are mastered. There is an understanding of the market, experience and practice, but financial results remain unsatisfactory.

Many traders face this situation. Why is this happening? What prevents promising currency speculators from succeeding in the Forex market?

Subtleties of the psychological game

Experienced traders argue that the same trading strategy in the hands of different people can bankrupt one and become the golden goose for another. At the same time, differences in knowledge, experience and intelligence between traders will be minimal.
Are you familiar with this situation?

You are testing a new trading system on a virtual account. Everything is going smoothly, the expected result has been achieved. If you try to trade using the same method for real money, losses begin, psychology comes into play. How does it affect the process and outcomes?

In real trading, several factors put pressure on a trader:

• the desire to “recapture” losses;

• fear of losing money;

• intuition, which prompts entries into transactions not according to the system;

• fear of the market or, conversely, a constant desire to be in the game.

It is for these reasons that traders haphazardly enter the market, take losses where they should not be. The desire to return the lost money makes a person open transactions again and again in the hope of covering the losses incurred. The outcome in this situation is most often the same – the losses become even greater.

The main enemy of a trader is intuition. Some even call it professional flair. It makes you deviate from the rules of the trading strategy, open orders not on signals. The financial results of unsystematic traders range from negative values ​​to excess profits.

In order to avoid mistakes, the cost of which can result in half, or even the entire amount of trading capital, it is necessary to learn how to manage emotions. How to do it?

Psychology of a successful trader

The main rule, without which you should not even dream of becoming a trader, is discipline. Spend a little more time testing and debugging the trading system, see it in action on a cent account ( ), but never break its rules in real money trading . If you have chosen an effective and workable strategy, be confident in it to the end.

Set yourself a daily loss limit. Limit trading when losses reach 10-15% of the deposit amount (notional amount). Cool down, think, analyze your actions and conquer the market with renewed vigor, but tomorrow. Don’t go to extremes. Don’t be afraid of the market. Open trades if the trading system gives a signal ( ). Forget about past losses and turn off emotions.

Do not trade for the sake of the process, a trader does not have to be in the market every day (even weekly). A successful trader analyzes every action and can justify every trade. If you learn to trade with your mind, not your emotions, financial success will not be long in coming!

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