For anyone that has traded anything they would know its a journey of ups and downs. We buy with a prediction that the price is going to move in our favour and then we wait.
We wait watch and experience an emotional roller coaster, maybe even lose sleep, as the price moves up and down, then up and down, until we get to the point where we can't take it any more and we sell.
This emotional involvement is a typical behavior of all traders at some stage in their traders life, some traders learn to control their emotions within a couple months of their first trade, most take years and some never do.
Leaning to control your emotions is more important than any other part of trading. With controlled emotions you will protect your capital and subjectively evaluate your trading method.
We are currently experiencing a horizontal market with strong and constant volatility, you're probable thinking these are not favourable conditions, although I think they are perfect for refining and strengthening your emotional stability.
If you trade and feel that the market's movements control your happiness. You need to stop trading with your capital, cause you will get burnt. Start paper trading and focus on theses three thing,
We wait watch and experience an emotional roller coaster, maybe even lose sleep, as the price moves up and down, then up and down, until we get to the point where we can't take it any more and we sell.
This emotional involvement is a typical behavior of all traders at some stage in their traders life, some traders learn to control their emotions within a couple months of their first trade, most take years and some never do.
Leaning to control your emotions is more important than any other part of trading. With controlled emotions you will protect your capital and subjectively evaluate your trading method.
We are currently experiencing a horizontal market with strong and constant volatility, you're probable thinking these are not favourable conditions, although I think they are perfect for refining and strengthening your emotional stability.
If you trade and feel that the market's movements control your happiness. You need to stop trading with your capital, cause you will get burnt. Start paper trading and focus on theses three thing,
- Following your trading plan, if you don't have one in writing, write it down.
- Make decisions on your trades in accordance with your plan, no ifs or but, just follow the plan.
- Do this until making trades, winners and loses, feels like a job. You're trading to make money not looking for a rush.
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