How important is trading psychologyOleg Alexandrov
Guys I want to submit to you a topic for discussion. I realized that for me, the main issue in trading was about emotional control. Each time I make profit, it’s when I force myself to respect my initial plan. On the contrary, I mostly lose when I act emotionally. I found some tips to control emotions, maybe they can help you to control your emotions too (it doesn’t mean that I always manage to respect all these tips) :
1. Chose carefully a trade. You have to be very sure about the move before acting (it’s simple to say, but hard to do, because there are sometimes more signs of the movement direction after you entered the trade. These new sings could make you doubt)
2. Make looses small. You have to put a stop loss. (personally I’m very sensitive about looses. I’m not comfortable with it. But it happened to me to lost a lot in a single trade. I regret not cutting looses asap)
3. Limit the size of your trade, to make it almost insignificant if you lose (simple to say as well, especially if you trade in #crypto, because all the movements are mainly based on #btc movement. So if you have 10 trades in 10 coins and they are moving in the same opposite direction, it hurts. In addition, I like to have a big position in 1 coin, it makes simple to control it. But it’s dangerous).
4. Put some barriers to prevent you from acting without previous deep analysis. Ex: when you see a large green candle, do not rush. It’s too late. For example: Make you swear, to make a TA or/ read all your trading rules and principles before entering a trade. That will postpone your decision to take a trade and make you think twice before entering a trade.
5. Do not try to recover fast after a series of looses. Do not try to take revenge on the market. Try to trade little after such a period of looses. As for example after btc ath il December 2017, I lost 95% of my money, because I often wanted to recover what I lost, and this on the market that was in a bear trend. A fool I was).
It’s very personal point of view, because I understood that my success in trading depends on it. Some of you don’t have problems with it. Others might find it useful.
And do you have some other advices, tips to share in relation with emotional control?
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