Topic: Things that influence our trading decisions - page 4. (Read 726 times)

That's what I thought before that you have to learn all the indicators to become a profitable trader. I learned many indicators but instead of making it easy for me to trade, it complicates my trades. If you're going to use an indicator to determine the trend, you can either choose moving averages or Bollinger bands, no need to use both of them in the chart because it's useless.
And yes, emotional stability in trading is very important to be successful and that's why some people says that it's 90% psychology and 10% TA.

When a trader cannot control his emotions, the potential loss he will experience will be higher than a trader who is able to control his emotions. Good emotional control will allow a trader to trade according to plan, but still the return on trading is very dependent on market volatility, not only analysis.

Emotional control is also part of trading psychology. That is obviously very important for a trader as it will enable them to become successful traders later on. Experience and knowledge can support them, but as long as they are still afraid of losing, it is clear that controlling their emotions will be difficult.

^This is definitely right and I agree with this.
Being successful traders means having a deep understanding of how to control our emotions rather than letting them control us. By developing emotional discipline and staying committed to our trading plan, we can overcome the negative impact of emotions and have successful trading decisions. Remember, managing emotions is an ongoing process that requires self-awareness and practice. Through discipline, self-reflection, and continuous learning, we can strive to become better traders and improve our overall trading performance.

Loss aversion

I like this. Thank you.
Some of them put an arrow in my heart accurately as I reminisce all the mistakes I did back when I was starting. Emotional issues had always been a problem when it comes to trading. A trader should have a cold heart, he cannot fall in love with the coin that he is trying to reap money from.
ICO times, I bought coins that I usually trade because of the sudden swings in the market where stablecoins are not yet trending. I bought this one coin from a project because I thought I could use it to play with its market and make a profit from it. Sadly, I ended up joining their Telegram group and I had the hardest time of letting it go because of all the optimistic investors feeding everyone with good news.
It ruined the plan and it was dumped by whales so there's no ROI too. Whatever coin we are trying to buy, let's just join their groups for informative reasons and not become a hardcore fan. It will definitely affect our decision if we stick there and read the statement of other investors who wants it to be pumped.

That's what I thought before that you have to learn all the indicators to become a profitable trader. I learned many indicators but instead of making it easy for me to trade, it complicates my trades. If you're going to use an indicator to determine the trend, you can either choose moving averages or Bollinger bands, no need to use both of them in the chart because it's useless.
And yes, emotional stability in trading is very important to be successful and that's why some people says that it's 90% psychology and 10% TA.

Many people out there which want to become traders have the mistaken idea that if they want to become traders then they need to master all kind of different indicators and become a master of TA, and while that will help without a doubt, it also very important that people develop some emotional intelligence when they trade, as it is on those critical moments when everything hangs in the balance when the most important outcomes are decided, and if you are an expert on reading charts but you have a low emotional intelligence then you will make a mistake from which it will be almost impossible to recover.

If you become mentally strong, then many of the issues mentioned in the op can easily be solved. You need to be determined completely and should not lose focus from your goal or daily limit. Making a decision was always hard, as several factors affect here. You need to analyse the risk, estimate the outcomes and predict the direction before investing in any coin. If a person excels in everything I mentioned previously then definitely he can reduce the risk and can completely change his profits or basically increases it.

Based on my experience, the things that influence me in making my decision are my emotions and Technical knowledge. It is something to note that the more we become too emotional, the more we can't think the right thing and it leads to making wrong decisions. It is very common when we are newbies but as we gain experience, it gradually changes and now we are focused on following the trend, doing TA, and improving our skills and strategies. Because when we are a newbie, we feel worried that is why we become too emotional.

^This is definitely right and I agree with this.
Being successful traders means having a deep understanding of how to control our emotions rather than letting them control us. By developing emotional discipline and staying committed to our trading plan, we can overcome the negative impact of emotions and have successful trading decisions. Remember, managing emotions is an ongoing process that requires self-awareness and practice. Through discipline, self-reflection, and continuous learning, we can strive to become better traders and improve our overall trading performance.

~snip~
However, due to previous losses, we can become emotional, which complicates our trading. This is a hurdle to our trading strategy, and if we are not conscious, we will become victims of our own emotions. As you stated, greed is a result of emotion, most notably consistent losses. To be good traders, we must understand how to manage our emotions.

Emotions and the news are the top contributor on making decisions and in trading even if you practice not to get very emotional while trading you can’t still escape the fact that you’re still affected especially if greed is taking over your trading decisions. News are common as well, as a trader you should only not focus about the price trend, but also see the market trend because in crypto, the market can easily go pump and dump on every news.

Emotions and the news are the top contributor on making decisions and in trading even if you practice not to get very emotional while trading you can’t still escape the fact that you’re still affected especially if greed is taking over your trading decisions. News are common as well, as a trader you should only not focus about the price trend, but also see the market trend because in crypto, the market can easily go pump and dump on every news.

Based on my experience, the things that influence me in making my decision are my emotions and Technical knowledge. It is something to note that the more we become too emotional, the more we can't think the right thing and it leads to making wrong decisions. It is very common when we are newbies but as we gain experience, it gradually changes and now we are focused on following the trend, doing TA, and improving our skills and strategies. Because when we are a newbie, we feel worried that is why we become too emotional.

we can't totally discard such emotions because we are only humans. and that is human nature. but a person of course can contain these emotions. but he should have good tactics on how to control such feelings so as not to drag himself on going down.
and for me, one of the major factors that can influence my trading decision is the availability of funds, and to what extent i can use such funds. trading knowledge can be learned and once you have enough money, you can actually start learning those tricks.

Good day everyone, let's talk about the factors in our Trading decision in terms of psychology. There are many things that affect our decision-making, and that's why sometimes we don't know why we make that decision. Sometimes we are repeating the same mistake over and over. Let's find out the common triggers that happen in our brain that make our judgment poor in trading.

* Emotions in trading

Our emotions are part of our human behavior and it has a profound impact on our trading decisions. In the context of trading, the two primary emotions that affect our decision-making are "FEAR and GREED" Fear is a powerful emotion that will push us to think twice about entering and exiting the trade. Sometimes because of our fear of the trade, we exit immediately even though we know that it is too early to do so. And when fear dominates we become overly cautious, which also causes us to miss the opportunity for profitable trade even though we have seen the high probability set-up we should enter a trade but we don't because of fear.

It's the same when we enter a trade, we immediately exit because our immediate thought is that we might still lose. This is also due to fear, Now if we are Greedy it also has an effect on our decision-making. Because this will push us to take excessive risk because we want a higher return. So, because of greed, we will increase the leverage that the position size is too big, the type that can only gain a lot, we will trade 100% capital in just one trade. It will also cause impulsive action, and we will also be tempted into speculative trades without proper risk management.

I believe that the more experienced a trader is, the better the trader's emotional control will be. as well as their skills and knowledge regarding trading strategies and techniques.

everything cannot be learned instantly by novice traders and then become professionals. those who are currently professional traders also need quite a long time to be truly said to be experts in trading.

I agree that emotions in trading are of great importance. Perhaps even more than experience, knowledge and the ability to analyze. The ability to respond correctly to news is very important. There must be a balance. Trading and not taking into account the news is a bad idea and overreacting to every news too
The emotional factor is the most important in trading, after receiving the planned result, we want to get even more, and then more, and then everything can be lost. That is why emotions are more important than knowledge and experience. While it should be in balance, without the knowledge and experience of emotional intelligence, it won't be enough.