Every trader needs to try to avoid the
emotions of trading that occur when they are active. The meaning of these emotions is an unconscious nature that appears when trading. The emotions are very diverse, some are positive and some are negative.
Consciously or not, psychology plays a very big role in achieving good performance in the trading market. When traders manage to choose the action they want, then it is better to know the risks that can occur afterward, and this decision has to do with mindset.
In every situation, foreign currency traders and investors need to be aware of what they are making. Sometimes emotions can be helpful, but there are also moments when this trading emotion becomes a bad idea. Therefore, that negative emotions need to be avoided.
What are the Emotions of Trading and the Best Way to Control All of Them
For those of you who still don't know what the bad effects of these emotions are, we will explain through one example of negative emotions. Always try to keep this from happening when you are in the best forex market, so you can still get the money you deserve.
1. Fear
Before making a decision on a currency pair, some people are suddenly afraid. Maybe you are afraid that you have missed the chance to win or you don't even dare to apply a strategy. The emotions of trading this one are the most detrimental.
2. Wishful Thinking
It's okay to face it, but a trader can be very disappointed if his whole mind on that decision is just hope. Traders need to prepare a strategy, not rely on luck. From now on, use wishful thinking with strategy.
3. Disappointment
When you lose, natural emotions of trading that will come out is a disappointment. Disappointment is actually very difficult to calm down, but the desired result can be on another occasion. So, it's okay to be disappointed, but don't let it be too much.
4. Anger
Similar to disappointment, when we lose our assets, it is a normal thing to be angry. Maybe angry because there is a technical loss or the desired capital is not obtained. Always stay away from this anger because it is the worst.
5. Panic
When we panic, our brain automatically doesn't work normally anymore. When panic, it will lead to misinterpretation of reading indicators. Don't panic, always be optimistic and confident so that the strategy you have prepared can be on target.
6. Euphoria
Too much or what is also known as euphoria is a significant loss. This is one of the emotions of trading that arise when trading profit. This euphoria needs to be removed because it can bring greater risks to our trading.
7. Frustrated
Feeling frustrated while in the trading market is also something you should never achieve. The activities carried out should bring you fun, not even frustration because of continuous defeat. That's what trading time management techniques are for.
8. Greed
Greedy, a kind of very bad emotions of trading. This trait makes traders too focused on profits without thinking about the risks. For example, you have won a lot, but the greedy trader will still feel that the results collected are not enough.
For the management of all these emotions, there is a broker we rely on. Didimax Forex broker, here, you can control the market yourself with a certain risk until the
time of trading. This Didimax Broker will also make your trading smoother.
That's not to say you shouldn't be emotional when trading, but it's best to avoid the negative. When trading, focus on everything, including the little things like psychology. By studying the emotions of trading and their bad effects, you will become wiser.