Emotions are a big influensfaktor in the trade, and causes impulsive trading decisions which are responsible for that we miss a potentially good business or risk too much money. The list is long but if you are a trader you already know that if you could control your emotions in a better way would your handelsprestanda be very different. Now you know that you can never eliminate the impact of emotions, but there are some things and tips that you can follow to minimize the impact that emotions have on your trading. Emotions are without a doubt among the most influencing factors. We will analyze the emotions and the psychological caused the effects that the traders have to deal with daily.
The 6 most common emotions in trading:
Fear is the main feeling (greed, that will next is the other). The fear manifests itself in a number of ways in the trading and it can be the cause of many handelsfel. Fear allows traders to delay the realization of a loss that becomes to much greater losses and the fear of giving back profits that allows the trader closes the winning trades too early. There are many aspects of fear.
Greed is good, but when we look at the hard faktorna that cause greed, so it is often a number of impulsive trading decisions which should be avoided. Traders affected by greed, often does not follow sound risk and penninghanteringsprinciper. Greed also enhances the speluppfattningen trading without fixed rules and is based on impulsive decisions.
Hope, fear and greed often come hand in hand. Traders who are in a lost position often shows signs of hope, when they are delaying the realization of a loss and gives a trade more room to breathe. Another example of hope is when traders try to compensate their losses in the past and enters into a trade with a position that is too large and not according to their rules.
The Excitement / Anxiety
Excitement in the trade is a sign that you are somewhere along the lines has gone wrong. When you are overly anxious, it is often a sign that your position is too big, you broke your rules, or that you should not be in the trade. To keep track of your upphetsningsnivå and ask yourself why you feel anxious or excited can often help you to get out of the business where you should not be in the first place.
Despite the fact that boredom is more of a situation you are in than a feeling, it is still worth pointing out. Traders who are bored often lack focus. A sign that you lack focus when you find yourself by the same instruments and time frames over and over again without really knowing what you are looking for. Give priority to the right, do not participate in any other activity.
Frustration is often the cause of handelsfel that depends on any of the previously mentioned feelings. When the trader lacks the business, violates their rules and lose money, take too much risk and lose too much money, starting the frustration take over. The Frustration amplifies all of the bad and negative behavior patterns that a trader struggles with and intensifies the problems which a trader has.