The most challenging thing for a trader is to deal with the losses as it is really hard to cover up the losees and maintain profit on the same time. Psychology of a trader matters a lot as many people cannot handle such pressure. It makes them stuck into the complexity of the market which has devastating end. Thanks!
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The greatest psychological challenge is to control yourself from making the emotions making the decisions. This is one of the biggest challenge for any trader. Greed and fear try to control you in the market. I hope that you have some control over yourself.
I am sure that majority of the traders will agree with me that the biggest psychological challenge is to control yourself from over-trading. Over-trading kills a mani when he is tired of this trading performance. You need to control yourself from such time. Don’t worry, experience will help you.
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agreed, many traders don’t like to hear the ugly truth, overtrading is a person that is pushing the risk envelope or gambling element. As being fearful to enter a trade or allow a winner to run is the opposite side of risk aversion.
The sub-conscience mind is ever so powerful.
that was my greatest challenge. i used to over trade a lot in the beginning but now i know when to stop and when to trade again. time is the best teacher indeed!
Of course time teach us which we do not know before. in forex trading also we do many mistakes and random things. A over trading is also a issue , traders think as they are sitting in front of screen they have to trade and trade. This challenge is solve able when he makes a target and plan . After getting his daily or weekly target he should avoid trading. Just save his earned amount .
That was my main problem in my early stage of trading.
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To stick to my Risk/Reward ratio
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Fear of losing greatly affect my trading decisions. It is hard for me to accept the losses. Sometimes my emotions overpower my decisions. How to take decisions freely,when the mistakes you made in the past are struck in your mind and affect the way you will read the signals in the future.
Feeling overconfident after making some consistent winning trades and then over-trading as a result!
just risk what you can afford to lose. All retail traders are going to experience losses, so if you can’t accept that then you won’t be able to become a profitable trader
The biggest psychological challenge for me is Greed which leads to over trading.
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As a trader, whenever I am winning, I get a little bit overconfident and clouded my judgement for the moment. And sometimes it get the best of me. And like the user above me said the same thing that sometimes having the greed of winning can get me over-trading.
For me the greatest psychological challenge is that i know that i am being emotional while trading buy its my inability to control it.
Sometimes I revenge trade. And it and never turns out good for me. I always regret after that.