Whether you are a forex, stock, futures, or crypto trader, the following three (3) useful psychological tricks can help you become a perpetually winning and profitable trader.
We all understand that trading is a very difficult thing to do, and many traders are likely to lose a chunk or even most of their trading capital in the process. However, to put yourself in the league of the winners, you must equip yourself with appropriate investment education.
These three (3) psychological hacks will transform you into one of the winners if you carefully apply them:
1. Take emotions out of your trading: It is natural to be emotional when trading. For the fact that money is involved and greed may be a compelling factor, but it is more sensible if you can decidedly throw away your emotions while trading. This is because too much emotion will bring fear and confusion. However, to succeed, you need to be laser-focused and determined. You are only troubling yourself being emotional, and that will possibly lead to making some mistakes while at your trading desk.
2. Embracing risks: Trading is a very risky business: To succeed at it you must learn to embrace all the risks associated with it. This entails that you shouldn't be scared or feel greatly disturbed when the markets are against you and you are losing money. Learn how to "steel" your heart and remain calm no matter what are happenings to your trades. You've got more to lose by panicking or getting momentarily confused. You may end up making avoidable mistakes that could result in your trading capital drawdowns. If a trade is going against you and you can't stand it, get out of it or use a stop loss rather than getting perturbed about it.
3. Overcoming greed: There is always a chance to make tangible amount of money from trading. However, that should not push you into becoming too greedy. As a result of unchecked greed winning traders have seen their successful trades turn to losers; some of them have even lost a great deal of their trading capital or suffered a total account wipeout!
You should guard against greed by taking the following steps to safeguard your trades:
- Have a realistic trading expectations
- Don't ever overtrade
- Use leverage carefully and sensibly
- Don't borrow money to trade if you can't afford to lose it
- Never dabble into trading any financial instruments you have little or no knowledge about. For instance, many traders have lost fortune dabbling into cryptocurrencies simply because their folks are doing such trades, even when they were not sure how cryptos work. Don't do it! Stay safe, stay profitable!!
