A lot of people try to simplify trading.
For example, while getting daily Forex signals and implementing them in your trades is a good idea, it does not always work because daily Forex signals should be analyzed before implementing them too.
Just like that there are ways to manage risk in trading through managing your emotions as well. Here are some emotions every trader should steer clear of if they want to be successful.
Has it ever happened to you that you are winning a trade and have hit your target, but you think staying in for a bit longer might make you more? However, when you do, the profit you had made initially is lost too and the market turns for the worst?
If so, we hate to break it to you but that was the result of greed. Greed sounds like an intensely horrible emotion and often we don’t want to admit that we feel it too. Truth is, all humans do. We all want more.
In trading though it can turn you into a gambler so it’s best that you stay away from it.
Some traders, after they lose a trade, try to take revenge on the market. This is rarely, if ever, successful. Usually it results in more loss.
Remember that the market does not know who you are and it is not especially trying to get you. The conditions are just not in your favour. So either change your strategy a little temporarily or better still stop trading. Call it a day and enjoy your day.
Being angry at the market only harms the trader and never the market.
Fear in moderation is good to keep us on our toes, but when it starts keeping you from participating in the market the way you ought to, it becomes a problem.
New traders who join the market having heard a lot about it, sometimes tend to be very fearful of it. This is natural. You can take your time getting used to trading.
However, do urge yourself to move on from that phase of fear and intimidation and start thinking like a professional trader.
Arrogance in trading means becoming too comfortable and not keeping a close eye on your trades.
Some traders when they are experiencing a winning streak tend to get a little arrogant about their performance and feel they have cracked the code.
Unfortunately, there is no code. There is a great possibility that the market can turn on you any time. Therefore, stay on your toes and plan for losses and take the required measures in time so that you don’t have to face any major ones.
Hoping that these will prove useful for you in correcting your own mistakes and help you become a more profitable trader.