Topic: The Importants of PSYCHOLOGY in a trader - page 2. (Read 240 times)

Talking is easy, but taking action seems difficult, especially when you are trying to risk something that the brain considers valuable and a reason for happiness, which is money.Greed is an emotion and a feeling, and without it, we would not have undertaken any high-risk trading, and therefore you must tune in to that greed that controls this emotion, otherwise you will be satisfied with the guaranteed profit that the bank offers you.I can write thousands of influential words, but after reading them all and in the first test, you fail in trading. The reason for that is that emotions and controlling them comes from real practice in doing trading more than from theoretical knowledge. When fear comes, logic loses.

Yes, and I tend to agree with the OP that psychology is a very important aspect of trading, as it can help traders develop the mental skills and strategies needed to navigate the risky and challenging world of the financial markets, especially in trading.  

Because IMO, trading isn't for everyone and if you don't have knowledge or skills trading isn't for you.

Traders who can manage their emotions and make rational decisions are more likely to be successful than those who are driven by fear, greed, or other emotions.  IMO, psychology can help traders understand how their emotions affect their trading decisions and develop strategies to keep emotions in check.

I am a psychology student and let me tell you this what I have learned from experience and knowledge. Human mind is not as simple as that. Just saying and acting on that is never an easy job. Human mind needs training and overtime it becomes a habit. We all know that we are slaves to our habits. Trials and errors are the best way to do it. Keep practicing until you make it perfect. The more you do it, the easy it becomes.
As human beings, it is natural for us to experience such emotions, but as I said, we are all slaves to habit. The more you face your fear, the more you earn the courage to fight it back. This is where psychology should be used. In order to have control over our emotions when it comes to trading.

Emotions are the common problem with regards to trading, and many are tend to be more emotional which results to a negative trade, this is not easy to control but you have to learn how to. If you are going to trade, the first thing that you need to learn is how to control your emotion, and how you can trade effectively because if there’s too much emotion, you might forget how to trade properly and follow your emotion which is not good at all.

Not all would really be having that kind of patience on going with the right path on a slow and steady pace but rather they would really be going into that fast pace and would directly be going into those high leverage
without even trying to look at on the imposing risks on which it could really give on. They would really be just mindful on the time that they would really be losing up huge money on the time that they have dive in into this market. Being greedy would really be the first thing you would really be minding or feeling off when you are really just a newbie, you would really be minding on how to make yourself make huge income or money or profits
when you do make out trades but on the time that you would really be on the field then this is where impression and realization would kick in.

We do have different approach about of this speculative or random market.Some might be thinking that they could handle it in no time and having those unrealistic approach and to those people
who are really that mindful about taking steps and really be that careful on what they are doing . Each person is different and this is why different actions would be made
will really be that different too.

IMHO. You shouldn't put them altogether closely on this thread and you may add some space to make it easier to read for each important factor you've mentioned.

And this isn't just all about being influenced by the market but being a trader with a decisive approach towards the market. You're not easy to be influenced by any other influencer or news that you see.

However, you're also good in adopting any helpful thoughts and sentiments being shared by other traders but you're just going to consider them if they're good enough with your trading strategies.

Normally, trading is not for everybody; some people are just good at holding, but due to that act of greed, they think that trading is what can give them more profit, so they end up going into trading and ending up losing their funds along the way. It's not as if everyone who is involved in trading loses their funds, but every crypto trader doesn't make a 100% successful trade all the time. The truth of this matter is that not everyone can really be good at trading because, phycologically, they cannot have control over their emotions when carrying out trades. They can mismanage their funds and run into big losses.

I agree with you because it's the greed that empties the portfolio of a trader. We humans are emotional beings by nature and in trading some people get affected very adversely by the emotions that they put all their money into trading without gaining proper understand about markets. The greed is the main destructive factor in the case as a trader when earns some profits thinks that in few days the trading will change their life and make them rich.

That's why they put all their savings into trading without getting familiar with the risks that one must have to understand before jumping into trading. There are some over greedy traders who are so naive in this case that they leverage blindly and lose their capital. Leverage is the riskiest thing for a trader, it holds the power to liquify the whole capital of a trader.

It is the natural reaction for action to happen after the feeling of fear has been accommodated. It is natural to have some kind of fear no matter how hard you try not to show it to seem tough, what understanding fear means to me is for you to understand that the reaction after should not be made without control or consideration. The chances of making wrong decisions in trading increase if you make decisions without controlling the effect that the feeling of fear gives.

A trader who refuses to be flexible with their strategy will not be a successful trader. A part of trading requires you be able to observe and know when your strategy is no longer functional or effective and then be flexible ssek and accept changes.

You must overcome your greediness by don't use leverage.

With newbies, if they fail to not use leverage, they will fail to control what leverage they use. It is very easy to say I will not use leverage is higher than 2x but later you will use 5x, 10x or 50x.

On some exchanges, you have to click on Confirm to start using their leverage trading tab and if you don't complete that confirmation, it is a good prevention to not use Leverage.

It can be more risky if you use altcoins as your collateral for leverage trading. Altcoins can be dumped a lot and reduce your collateral value to a level that can cause forced liquidation.

Overcoming greed is most important thing in trading. Just use the amount of money that you are able to afford to lose for trading. Do not use leverage that can lead to fast liquidation of your trading fund. Going less than 2x leverage can be better.

Do you know that some people are good traders but they continue losing because of greed.

In addition, a trader should not be addicted. Have something recreational that you are doing. Do not let trading take your time in a way it will become a problem for you.

Psychology is important for human.

If you are not confident about yourself, you can not be strong enough to succeed as along your way to success, you will be challenged by many troubles, barriers and even enemies. You must be strong mentally to succeed.

In trading, in the market, you will have to understand Psychology cycles of market to know why most of people response the same in a same market. The crowd is mostly manipulated by whales and market makers because they can not control their fear, greed, emotion and generally it's about psychological challenge.

Psychology of a market cycle

OP let me first advise you by making this important correction to how you should post a content in case of next time, always make use of line spacing or let me put it this way, paragraphing is very important in making your work more presentable to the reader, you will need to apply such network it point you're raising and discussing than writing everything altogether without a paragraph inserted at all,  this should be an added psychological application of writing a post and making it presentable.

As a trader many skills are required for trading successful ly in the financial markets, they include the abilities to evaluate a trading fundamental and to determine the direction of a stocks trend.
But for me neither of these technical skills is as important as the trader mindset that is the " PSYCHOLOGY OF A TRADER"
SOME KEYPOINT IN PSYCHOLOGY OF A TRADER
* UNDERSTANDING FEAR ÷ When trader get bad new about a certain stock or about the economy in general, they naturally get scared. They also overreact and compelled to liquidate their holding and sit on the cash refraining from taking any more risk. A Trader need to understand what fear is, it is a natural reaction to aperceived threal.
*OVERCOMING GREED÷ As a trader the major problem is overcoming greed in my country they is an old saying on wall street that " pigs get slaughtered " this means the habits of greedy investors have of handing on to a winning position too long to get every last tick upward in price. sooner or later, the trend reverses and the greedy get caught.
I no as a human greed is not easy to overcome, it's often based on the instinct to do better and get a little more.
*SETTING RULES÷ A trader need to create rules and follow them when the psychological crunch comes. always set out guidelines based on your rise reward tolerance for when to enter a trade and When  to exit it. set a profit Target and put a stop loss in place to take emotion out of the process.
*STAY FLEXIBLE÷ It's very important for trader to remain flexible and consider experimenting from time to time. one of the best ways a trader can learn is by experimenting ( within reason ). The experience may also help reduce emotion influence. This period assessment can help us the trader to correct our mistakes and change our bad habits for trading.
source https://www.investopedia.com/terms/t/trading-psychology.asp