About the Trading Psychology category

Got a problem with trade management, money management, or controlling your emotions? Seek help here!

15 Likes

To trade effectively, you need to become your own psychologist and coach. We must identify psychological reasons for failure and find solutions. Don’t you agree?

17 Likes

I would recommend you to go for Algorithmic trading. Mainly because algorithmic is completely emotion-free form of trading where emotions do not result in you losing money(slippage).
Algorithmic Trading is different in the sense it is little complex and involves some research, and other analysis. It involves creating own algorithms based on certain indicators, movements and other things.

I would like to recommend you something that I have used myself and has worked wonders for me. It’s called APIBridge by Algoji. It has high level of customization and you can integrate it with various advanced third party research and charting softwares for all your needs. It can integrate with TradingView, MT4, NinjaTrader and even Excel. Along with paper trading and back testing facilities. Their website: Home Particle Animate - Algoji (APIBridge is developed by a company called Algoji, hence you have to download it from there). Hope this helps!! Let me know if you try your hands on this one.

7 Likes

Thank you for this

For managing trade, money and emotions, you should not rely on any other person. You must learn how to become your own coach. This trading world requires a lot of hard work and patience. Build a strategy and just stick to it.

8 Likes

Many complain, but I had no problems

1 Like

Recently, I have problems in trust, I look everywhere for some trick

Agreed with you mate, greed to make quick profits and lack of patience will always generate losses. One must be consistent in learning and should work hard to achieve success.

2 Likes

For trade and money management, learn as much as possible about the forex and for emotional management, work on your inner self. You can start meditation.

5 Likes

Totally Agree with u

Once you have funded your account, the most important thing to remember is your money is at risk. Therefore, your money should not be needed for regular living expenses. Think of your trading money like vacation money. Once the vacation is over, your money is spent. Have the same attitude toward trading. This will psychologically prepare you to accept small losses, which is key to managing your risk. By focusing on your trades and accepting small losses rather than constantly counting your equity, you will be much more successful. It’s like loving holidays over money.

6 Likes

Thank you I completely agree with your opinion

never involved your emotional on it

just treat it like buy and selling real stuff in the traditional market

Trading psychology is an essential factor in money-making. Actually, it is no less important for creating a successful trader than trading knowledge and experience. Trading psychology refers to the mindset of any trader that guides decision making.

How to Develop a Sound Trading Psychology

  • Manage Your Emotions

Remember that fear, excitement, greed, nervousness and overconfidence are typical emotions experienced by all traders at some point. Mastering how to control these emotions can make all the difference between the success and failure of the trading process. Make sure you never make a trading decision based only on how you feel. Instead, let any decision backed by rational reason, market analysis or according to a trading plan. This way you’ll avoid emotional trading and bad decisions.

  • Learn from Mistakes

Regardless of experience, traders make mistakes. The key concept is to embrace your own mistakes, learn from them and avoid repeating any. Check common trading mistakes to avoid in forex trading.

  • Overcome Greed

Greed is an overwhelming feeling that can lead to devastating decisions if not handled in the right way. It is the most commonly experienced emotion among traders, whether they are beginners or experienced. Learning how to control this feeling by acknowledging that you can’t seize every opportunity in the market is very critical. Knowing how to achieve a steady process is also helpful.

  • Realize the Importance of Consistent Trading

Beginner traders often look for different opportunities which get them distracted between multiple opportunities without sufficient experience how to handle any. If you’re a beginner, try to focus on the specific market and learn its fundamentals. The true success is to keep your trading as constant and profitable as possible.

  • Follow a Trading Plan

Developing a plan to serve as a guiding framework is very crucial to achieve consistent profitability in trading. It is pretty much like a road map that keeps you on track to your trading goals. A good plan will help you in making rational trading decisions, by sticking to its rules. Check how to develop a successful Forex trading plan.

  • Apply Risk Management Tools

Risk management is the process of identifying potential risks to your investment in advance, analyzing them, and taking precautionary steps to avoid their impact. In the world of investment, risks are always there. Hence, risk management is inescapable and should always be prioritized when it comes to evaluating an investment’s return. Following a solid risk management plan will keep you guarded against irrational trading decisions.

  • Understand the Fear of Missing Out (FOMO)

A skilled trader knows how to detect the suppressing feeling of FOMO and manage it wisely. While it is never easy, realizing that the markets are never out of opportunities and that a calculated rational decision is always a better opportunity, can be very helpful in this regard.

  • Take a Break

You are more likely to make irrational trading decisions if you are overwhelmed and stressed. It is ideal to take a break when you feel that the market is against you. Take some time off trading and review your trading activity. Start by sorting out the weaknesses and mistakes to work on them.

GOOD LUCK ON YOUR TRADING

11 Likes

For my first year I thought I was being very good with my risk management as I never risked more than 2%. In reality, I had far too much money in my trading account for a newbie and when you’re losing 80% of your trades those 2% losses add up real quick and it caused me all sorts of stress and misery.
I’m little over a year through my journey and have reduced my account size to less than 10% of what it once was - I don’t care as much when I lose now :smiley: Once I’m consistently profitable then I’ll whip the rest back in.

I’ve found the best way to handle my emotions is to turn the price action into a sport, Bulls v Bears. I want to take that trade, but I know I shouldn’t…and so I literally talk to myself out loud and make a running commentary of the price action as though I was watching a sport. It helps stop the “idle hands are the devil’s playthings” where I’m itching to get involved but it makes me aware of ‘match turning events’ that may fulfil one of my setups or completely turn me off the trade.

You have to be your own psychologist when trading forex and depending on some other person will definitely take you nowhere. Focus on your long-term strategic plans, practise all the fundamental & technical analysis, don’t be greedy, learn from your mistakes, follow your plans consistently, be determined, apply money & risk management tools, that’s all you need for successfully trading forex. Always remember that forex trading is not easy at all without your efforts & determination you can never be a successful trader.

This category is very useful not just for newbies but for experienced traders as well. Here we can talk about anything related to trading whether it be feeling nervous while trading or what trading style best suits you etc.

When trading psychology plays a keen role. You should be focused and stick to your plans. Other than that be determined as well. You should not put negative thoughts inside your head if something goes wrong.

Well explained! Thanks for the info

When the psychological crunch arrives, a trader must establish rules and adhere to them. Define rules for when to enter and quit trades based on your tolerance for risk and return.