Trading is difficult – but is it really? Even if some of the people fail and will never be able to make a single dollar in trading, it does not depend on that trade is extremely difficult. The reason why most traders fail is that our mind works very differently than what it should when it comes to success. Our upbringing, circumstances and society made it necessary to implement some förspänningar and shortcuts for how we treat and handle the information. Unfortunately, here you need the complete opposite. In the following article discusses the 5 common psychological problems that traders manage. Why do they affect our trading decisions?
To achieve results
”So long as you make money, it doesn’t matter what you do” – a very famous phrase in the trade, but it couldn’t be further from the truth. You can make a really bad trade, break all your rules and still end up with a profit because of some lucky circumstances. If you misunderstand this with skill, you will have a problem because it leads to inconsistent and erroneous trading behavior. On the other hand, if you make a good trade, be patient and follow your plan, but still end up with a loss, there is nothing to worry about. It is just as a markets and trade work.
Strive to be a disciplined and a tålamodig traders who follow his plan.
To make a decision – I had only a few gains, my strategy is unbeatable
If your last 5 trades have gone into profit, it is more likely that you will believe that your trading system is Holy Grail and you are willing to risk much more on the sixth trade. On the other hand, when you only have 5 losing trades in a row, you start doubting your trading system, and wonder if it still works at all. At the next trade you will be worried and inclined to ”play it safe”, which reduces your risk. Both ways of thinking are common, but not particularly helpful.
Traders often let the result affect their trading decisions. Each trade can only be winning or lost.
It is important that you do not make any changes in how you conduct or manage your business based on the results.
Traders like to follow ”famous” people on twitter, handelsguruer or listen to what the experts have to say on the financial media. But even the smartest expert has no greater power to predict what will happen. The reason that traders still listen to other traders and make trading decisions based on someone else’s opinion, is that they can put the responsibility on someone else. It is important that you make your own decisions, to be able to grow and develop the skill.
Look for someone or something else to blame when bad things happen. You can often hear traders claim that they made tons of research, made a good trading plan and waited patiently for that everything fell into place. We don’t like to admit that we were the ones who was up. If you do not agree to take responsibility as a trader you will never succeed. Trading is all about the unknown. You are the only one who pushes the buttons and makes decisions.
Negativity – this is a great rallyet must be over
It just can’t go higher. Negativitetsförspänningen is a good explanation to why many traders will never be able to trade profitably. Even if the stock market has gone up in several months, some of the traders just to talk about the rally’s end, the upcoming crash, and the inevitable correction that is imminent.
Try not to look for hidden characters that can motivate to go against all of the other – shop the obvious. And then, when it really is over, you will have the time to go check in the other direction.
The benefit of hindsight – it was so obvious
Why have I not seen it before? Hindsight is among the most common psychological challenges a trader must overcome. How often have you left a trade, and then looked back and seen immediately what you have done wrong? If you now say ”often”, you’re wrong. If it was so obvious, you would have seen it in the past. The problem is that we have leads us to believe that a loss could have been avoided; we were just not aware, not paying attention or using the wrong indicator. In reality trying to our thoughts to get on the excuses, false assumptions and reasons that we just could not be aware of.
Look not for excuses or reasons why a trade has failed. Try not to change a indikatorinställning or add a different tool to find an excuse for how you could have avoided a loss. Even the best setting can fail over and over again. You need to think long-term.
Conclusion: Awareness, acceptance, and adaptation Yes, it is easy to say that you are aware of your mistakes is half of the battle, but it is true. If you are aware of your mistakes then you have won half of the battles.