Trading psychology is the most essential part of the trading
How you think during trade and before taking it
It matters the most
Your trading style should match your psychology
Your risk management covered by this
No matter how much time you spend on Trading and you have knowledge but your emotions cloud your decision making and then ended up losing
To be a successful trader , you need to Recognise your emotional biases like greed, fear,hope,euphoria,panic and keep them in check
The lot of traders trying to time the market
And getting stuck in a situation where they have to book huge losses
A successful trader who knows once he entered a trade, he does not have any control over its outcomes. Instead of worrying about gain or loss, he works hard on fine-tuning his trading strategy
Here are some ways to improve your psychology
1.Avoid Overconfidence
Overconfidence in your trading knowledge may give you false belief that your views and decisions are always right. A Successful trader is careful not to fall into this trap of his own biases, opinions and market views
Instead he writes everything about his trades -loss , profits, trends , decisions it helps them to take the record and doing better trading
And helps to trade Mindfully in future that improves performance and profitability
2.Learn from Mistakes-
A Trader may work as per his Own Pyscology Of trading but the stock Market can prove him right or wrong in a matter of minutes.
Have the ability to accept defeat
And use this as an advantage to learn from this
3. Balance trading risks -
It's very normal to take entries in stocks when there is none or taking trades based on other people's advice , not having a system
A successful trader knows that capital protection is very much important and it should be a priority for maximum profitabilty
4.Not putting a stoploss and rather trading on your institution is the another mistake that people made during trades
Balancing trades from risk perspectives and being disciplined with your system are the necessary steps
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