One of the problems that often occurs among novice traders is entering the market under the influence of emotion. A strong price movement creates a corresponding emotional background, and the trader forgets about the rules of his trading strategy. He opens trade deals . At the same time, as the further course of events calls for, the market has already reached its maximum or minimum. After opening orders, it reverses and goes against the trader. As a result, we have a loss. The trader entered the market too late. There are also emotional transactions of a different kind. The trader seeks to open orders at the very beginning of the trend movement. Even a small impulse on the price chart is considered by him as the birth of a new trend. Why wait? It’s time to enter the market. Quite often, such an entry ends with a decrease in the size of the deposit.
Today I will tell you what you can do to prevent these kind of emotional trade deals. How to wean yourself from pushing a button without good reason.
You don’t have to sit in the trading terminal all day. Constant tracking of price movements on the chart creates a considerable psychological burden on the trader, which leads to emotional trading decisions. If you notice signs of emotional instability and cannot deal with it, then you should immediately stop trading, close the trading platform and do something else.
Having a trading strategy is a prerequisite for successful trading. Trade deals should be opened exclusively under its terms. If you feel an irresistible urge to click on the buy or sell button, stop and check if all the rules for entering the market provided in the trading system are met. Any signal can be considered working if it is confirmed using filters.
Attitude to trade
Each trader must initially form the right mindset for trading. You need to stop thinking about how much you will earn and how you will spend that money. Priorities for each trader should be such tasks as strict adherence to the conditions of the trading strategy, discipline and emotional balance. If they can be solved, then the profit will come by itself. In other words, the trader should be interested only in the trading process itself. In this case, he will be able to open high-quality trades, which are most likely to be closed with a profit.
Remember: trades opened under the influence of emotions, in the vast majority of cases, will be unprofitable. Avoid situations where emotions start to drive your trade.