Staying at home has helped me to study and learn and today, i will be referencing the key virtues that is learnable to be a trader
Trading psychology refers to mental or emotional state that defines or dictates if a trader win or lose.
Why do traders lose?
Neutrally, most traders are attached to their funds and capital which affects their emotions and force traders to trade not to lose money.
I advise that we all Have a winning mentality while trading, Because in the market today; there are tendencies to lose few dollars or money on every trade, but we can overcome by having a solid reason to enter a trade (DYOR).
5 fundamentals to help traders in the market:
1. Discipline: Coming into trading with a mindset not to gamble. You can use TA (Technical Analysis), because it teaches discipline to use it. Fundamental analysis meanwhile is about understanding market emotions correctly and trading with it.
Discipline helps you to see exactly what the market doing.
2. Patience: To be a patient trader; it means that you understand what the market is saying and the emotions attached, what the market could likely do and being calm and composed enough to follow what you see.
Why do traders/holders buy or sell too early ??
It happens because they do not know what is happening in the market, being patient while trading helps you to read properly and perfectly your analysis to a definite stage and also helps you to understand whatever the market is showing you without unnecessary emotional attachment.
To be patient, you need understanding, and to understand; you need to build a strong the fundamentals of what you are understanding.
3. Planning: Planning goes down to your analysis, your position sizing and also your trading psychology. For planning to help, you need to understand your analysis; and also understand that you must not trade more than you can afford to lose, once you go overboard; its gambling.
Planning helps you to accept the probability of how much you can lose and equally what you stand to gain from the trade.
Planning helps you to accept what will be earned or lost from the trade.
4. Persistence: Persistence helps you understand that the goal is to make more profits than loss.
5. Flexibility: This is quite difficult because as a newbie trader, you might not understand perfectly what the market can do; and there are some market moves that comes as a shock. Recent example is bitcoin losing 4000$ in a stretch few weeks back.
Discipline keeps your focused
Patient allows you to learn
Planning keeps you level headed
Persistence keeps you in the trade.
Flexibility allows you to combine all of this to trade.
And finally
Trading psychology is more of understanding people’s emotions and yourself
I am open to learn even further, and i welcome everyone suggestions
Yeah, I agree with all of these points, and what I prioritize is the first point, which is discipline. With this discipline we can run the four points under it.
Because it is the main key to mastering various things well. Practicing discipline is not easy, it needs persistence, patience and a strong intention to live it. Sometimes we also often neglect a job and even waste time with activities that are not useful or just for pleasure. This is where our discipline is tested and laziness will emerge.
If we can control our emotions and desires or desires that make us lazy, slowly an attitude of discipline will arise, and we become accustomed to being on time in doing a job. This discipline needs to be trained and used.