Significance of motivation and emotions

Motivationspsykologin studying what makes people feel and make decisions. We are governed to a large part of the different (specific biological needs which motivate us to act. But the motivation is closely linked with our strong emotions, something that affects our choices. Motivationspsykologi is just about the factors that put in the time and control the behavior.

Needs, desires, and impulses are examples of motives that get us to act. Our behavior has a direction and a goal. Motivation is related to emotion – emotional states of various kinds, often justify our actions. If we feel afraid it might give us motive to escape or exit the trade. During the evolutionary course of the emotional reactions have been a great help to us.

While emotions in high degree is controlled on the basis of, regulated mood more from the inside. Emotions are also transient, i.e. it gets angry and it goes over. But the mood it often takes more time.

It doesn’t matter whether you are reading sophisticated handelsböcker or not. Almost all traders are aware that psychology has a big impact on the handelsprestanda.

One of the biggest obstacles is that we get used to it surprisingly quickly. We often think that a nice life-changing event, in this case – a profitable trade, will make us happy for a long time but find that the rush of joy is short-lived and that everything pretty soon are just as common. To lyckokicken shall continue any form of change. We react skarkt on the change but as soon as it wears off peters reaction.

I missed the trade despite the fact that entry criteria – this applies to inexperienced traders or the traders that are losing streaks, the deer staring into a headlight. If you notice that you miss your trade, even if it meets all your criteria, you should reduce your risk. To eliminate the possibility of risking a large sum of money will usually help to reduce the effects of rädslabaserade handelsfel. By trusting your trading strategy you can slowly increase the handelsstorleken until you find your threshold.

How could I lose so much on this trade? – the opposite effect, you lose a disproportionate large sums of money on individual industries. If you overestimate förutsägelsekvaliteten for your trading system, you will be more inclined to use a larger position. In addition, it is more likely that a trader with a small trading account, risking relatively more. The dominant emotions in these scenarios is greed mixed with belief and ignorance – a lethal combination.

The best thing you can do is to reduce the handelsstorleken to avoid large drawdowns. You should specify an absolute maximum level of risk – no matter how good you think a setup is.

How to handle efterblickskunskap
Efterhandskunskap is a very important thing in trading, especially when it comes to improvements in your trading strategy. Here are some tips on how to use hindsight to your advantage:

Evaluate if you can improve the profit, or look back at the shops when you close them
Analyze the trades that you have missed and assess if some of your criteria
Not punish yourself.
Don’t let the potential outcome of a single trade affect your trading decisions on your next trade
Think big!

Below you will find Emotions Cheat Sheet. Print it and place it next to your computer.

Here is the download.

 

 

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