Trading Psycology || 10% payout to TFC

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Hello friends and famz,trust you are all good and keeping well. It's been a while,I want to believe y'all have missed me. Well I have missed you too. I have been unavoidably absent but it pretty good to be back with value as usual. Today we will be looking at the Trading psychology. Let's enjoy the ride together.

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What Is Trading Psychology?

Trading psychology can be defined as the way a trader responds mentally and emotionally to the movement in the market. This responses has a way of influencing their decision which could turn out to be the best decision ever taken or even the worst.

One needs to be very careful when analysing the market or about to make vital moves.Our emotion can be very tricky. Many have taken some decisions due to the way they felt and then it turned out to be one of the biggest mistakes of their lives.

Sometimes the little wins you get here and there from one trade or the other can make you loose your guard and cause you to over stretch or go beyond limit and at the end you get caught up.

The reverse could also be the case for many who have already lose some trade and out of trying to get back their profit,they start trading without caution or risk management,this is because they are already vunerable at that point.

Now all these can be checked and avoided if certain measures are put in place and if our mindset is right. There is a kind of mindset a trader should have. This saves him from unfavourable emotional imbalance and irrational decision.

Let's us quickly explore some of the measure traders can put in place to build him or her pyscologically as it relates to this subject matter.

How to build a good trading psychology.

• Get the right mindset.

I decided to put this first because I believe it's the first thing first. With the wrong mindset,you won't go far with your trading activities. Many traders came in with the get rich quick mindset.

They came ready to milk the market based on what they have heard, only for them to find out that they were all wrong afterall and that what they have read or heard especially from influencers about the market is not what it is.

crypto influencers are out there to promote even at he detrimental of many novice and amateur. That is why you need to be very careful with people like this. Always do your research and be sure of what you've been told.

Many of these people learn the hard way,they might have lost something substantial before they realized where they had gone wrong.

• Have a trading plan.

This point cannot be overemphasized,it is very important for every trader to have a trading plan no matter what. By trading plan I mean you will need to carefully decide on the type of trade you want to trade.

You should also determine what time is suitable for your trading activities. The level of loss or profits you would like to enjoy and endure accordingly should be taken into consideration.

It therefore means your risk and reward ratio should be clealy stated such that if the market turns against you and then bring losses,you don't feel pressured to push unneccesarily in the name of making back what was lost. You should have a working entry and exit strategy already and a definate time to trade

• Be committed and discipline to your plan

Now it is not enough for you to map out a trading plan. You should also see to it that you follow up the plan by exercising so much discipline. Not everyone do well here,some still blow up their account inspite of the fact that they have a working plan.

You shouldn't deviate from your plans because of some rumours or some general opinions of people flying over the social media or some great influencers.

When you do this,you expose yourself to different market emotions which could make you make some irrational decisions that can ruin your portfolio. So do well to always stick to the plan that has worked.

• Take regular Breaks off trading.

People who tend to trade all round might get caught up in the market. Such trader might experience some fake outs and the likes which of course might make such person make a wrong move especially when he is not skilled

Although the crypto market is open 24hrs, it doesn't then mean you shouldn't take a break. Taking a break is needed unless you're a bot. Only a bot will not burn out but as human you can burn out or miscalculate.

• Don't Stop Practicing

Practice they say makes better...smiles. I know you're expecting me to say "perfect". Well I chose the word better because as you practice you know and do better,learning never ends there is always something to get better at.

Trading psychology is part of it,the more you practice using a free trading account,the better you become. By practice you understand how the market works and then know what moves to make at certain point in the market.

The truth is that history repeats itself in the market which you can always take advantage of but that doesn't mean the market cannot also come with it surprises but you will handle it better when you're exposed to much practice as it improves your mental strenght and stability

Conclusion

Learning how to trade without being caught up in emotion is key,you will make so many mistakes when trading based on what you feel instead of using your well researched strategy.

You have to discipline yourself enough to avoid the noise and rumour in the market and follow your findings. It will do you a lot of good.

Thanks for your time. I hope you got value. I will be looking forward to your view in the comment section.

Regards
@lhorgic♥️