These tips are really good in theory but they are a little bit vague, which makes them hard to be implemented on practice. The most objective rule which are do fully support is ‘don’t invest in the assets that you don’t understand’. For example, it is pretty hard to understand what cryptocurrencies are. Before investing in them, you should understand them and which factors influence the asset prices, otherwise, you take lots of risks.
Great rules, friend.Thanks a million!
These tips are really nice but they are a little bit hard to follow. Surely, I am talking about the first two tips about emotional control. I think that there is no investor or trader in the world who would say something like ‘Listen to your heart while trading’. I guess that everyone here understands that emotions should be ignored before making trading decisions. However, nobody knows how to do that and what is more, nobody notices how emotions influence their decisions.
I would also like to point out the tip that I fully agree with. It is about investing in something that you don’t know. That is absolutely true. Before investing or trading some assets, you’ve got to study it very carefully and be able to understand their behavior in order to be ready to as many different market situations as it is possible. Otherwise, every unfamiliar moment may bring you lots of losses.
What I really liked about this post is the last point which was like a reminder to not to forget your rules. It’s easy to learn things, almost every trader knows what is right, what is wrong, what should be done and what should be avoided but only a few can follow and implement those things.
These rules are really good but it can be a little bit hard to follow.
Especially beginners will feel it hard to control their emotions. In most of the cases newbies don’t even think about psychological factor in trading. They feel that they will always be logical and emotionless, however, it is far from being truth. I experienced such moments in the very beginning of my trading when I forgot about common sense and did what I FELT like. Surely, more often than not, such an attitude led me to the loss of decent money. THat is why it is important to make the breaks. Even if you don’t feel exhausted, you’d better take 5-10 minutes breakes within an hour to recharge your emotional batteries and to freshen your thoughts.
Yeah great post to highlight some of the key things before starting
These rules are very interesting! I am thankful to you that you shared them. Just want to add one - never mix your trading experience with your personal life. You can afford to lose in trading but you can’t afford losing many moments, people and happiness in your personal life.
Super-beneficial thread for beginners. Has so much to learn here.
Not new to the market but these rules are permanent. Thanks for sharing!
Your thoughts concerning trading are clear here, but they are really hard to follow.
Especially, when it comes about emotional control. I mean that it is obvious for everyone that they should tame their emotions and avoid letting them take over the common sense. However, it is easy to be said than to be done. I think that in order to be psychologically stable a trader should pay attention to their trading strategy. If the strategy and the criteria for making this or that decision are precise and tangible enough, then there will be no emotional factor in decision making process. I usually compare it with solving an equation when youdeal with the numbers and that’s it. If there were no strickt algorithm to solving the equations, every example would look hard and the solution would come extremely hard and stressful. When the criteria are vague, there is much room for doubts and fear which makes trading hard and unpredictable. That is why I should say that if you want to improve your trading results and get rid of huge amount of emotions which influence your decision, you should look at your trading strategy and think whether it is objective enough.