Not just forex! Life in general I feel like!
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Emotional trading will never give good results. It is very important to make rational trading decisions based on logic. Greed, fear and panic will always create a brain fog taking away your ability to think properly. So we need to control these emotions and avoid acting on impulses.
Well said. Something that might be helpful.
With greed is 50:50. In many situations it can be useful.
Ooh tell me more!
Some of the most common emotions traders experience include fear, nervousness, conviction, excitement, greed and overconfidence. It is also imperative to note that a common cause of fear is trading too big, donāt be too greedy especially as a beginner.
Fear for me. Got.to pay to play they say. I get stuck in over analyzing and not being able to pull the trigger on a trade for fear of losing. Still gets me today
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Ok to be more specific this is what I meant. Not sure I did that clearly! What are some instances where greed can be useful?
True! These are truly the demons of trading. You may add anger, disappointment, and jealousy here. All of these negative emotions affect not only our trading but also our health negatively.
Interesting take, I personally agree with it. Those emotions are the demons of forex, and they are ones that should never be given into no matter what, because once you give into them, thereās no coming back. You can easily lose all your money then.
Avoid all of the emotions.
Not sure thatās completely ideal since thatās what makes us human. I think acknowledging it and working through them is a better route.
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I am sure about this as I am talking from experience. You lose? Learn from it. You win? Ok. Study and to the next one.
That is why trading is the opposite of being a regular human.
I think youāve hit all the main points! Greed and fear are common and can grow into huge monsters over time if not tamed instantly. Mindset and approach counts big time in such a market situation. Have a plan and stick to it.
I donāt like the term āavoidā when it comes to emotions. They arenāt something the majority of us can just turn off and on as and when we please. Better to learn to manage them as best as possible and understand how they impact your behaviour.
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I believe that some emotions, such as tension, greed, fear of loss, and overconfidence, are extremely destructive to us when trading, and that we should avoid these feelings while trading because they might have serious consequences.
Negative emotions do affect how we trade. Controlling them is the key, of course. The demons you talked about here can be very dangerous to a traderās health and trading. Add anger, self-doubt, lack of confidence, or a false sense of confidence, and you get a total emotional āpackageā of losing.
Trading requires patience and consistency, especially when you are first starting. However, traders can develop undesirable traits such as greed, impatience, a lack of practice, and aggression. It is necessary
to recognize and avoid developing such traits in order to have smooth trading with a more and better understanding
I really think you almost need to just trade through the emotions. Even if you lose. Hopefully itās a lesson, that you can repeat, and get comfortable with. I think at the end of the day, thatās the difference. Understand what kind of trader you are.