During trading, you should always keep your emotion aside because it diminishes your winning chances. It will be wise to examine the technical analysis and decide what you should do. Never give priority to your emotion. It is very dangerous for your trading career. But we cannot deny that emotional trading can sometimes bring you success.
If your emotion impacts your decision, it will be called emotional trading. For example, sometimes you feel overconfident, and sometimes you feel a lack of confidence. Sometimes you think you must bid to mend the previous loss, and sometimes you want to become rich in one day. Be careful; those emotions are harmful to your healthy Forex journey.
Nervous / Fear: Stepping into a new world is always a matter of nervousness and fear. And if it is the Forex market, then it is out of the question. Here on every step, you can lose all your money. So, nervousness is a common issue here.
But make sure you refrain from any nervousness and fear before entering into the Forex trading industry. If you feel nervous, you are likely to be mistaken. So, if your guts do not tell you to trade, do not trade and keep your hands off. Instead, sitting before your TV set is better.
Confidence and Excitement: The experts say that confidence and excitement are two important emotional factors at trading. While trading options, if you feel excitement and confidence, that means you are on the right trade. Visit here and learn more about the positive emotional factors which can improve your trade execution process.
From our point of view, having positive emotions is good for your trading business. But overconfidence is just the opposite. If you think you are right in every decision, you are likely to make a huge mistake.
Greed: “Greed makes a man blind and foolish,” said the famous poet Rumi. If you target to earn more and invest a lot, there will rise a possibility of losing your capital. Do not be greedy. Go to the pick of success slowly. There is no need to rush. Always remember, “The taste of patience may be sour, but the fruit is sweet.”
How to control emotions?
Controlling emotions is a very tough task. But we are going to give you some advanced tips which can significantly help you to manage your emotions. But remember, it will take some time before you gain complete control over your emotions.
Make your plan: If you make your plan before trading, your emotion cannot drive you. You can make your plan including risk and reward ratio, enter and exit price, take profit, and stop loss.
Choose the right time to trade: Research the technical analysis report and choose your preferred time to deal. It will refrain you from unplanned trading. However, it may sometimes happen that you buy during an uptrend or sell in a downtrend and make a loss. So always research and choose your preferred time.
Lower the Trade Size: The more your investment is, the more the risk is. So always trade less. Never focus on the amount, instead focus on the winning. It will be best if you take time and years of research to go for a higher trade. Wait for that level of experience and investment.
Relax: What bothers you is not for you. If you think researching, calculating, analyzing, all these kinds of stuff are bothering you, be sure that it is not for you. You should do that what is interesting to you. Otherwise, you may not get what you are supposed to.
Emotion is a gift from God. We have emotions that make us human. But emotion is not always good for trading. It often drives us to the wrong decision. Sometimes it brings good results too, but it’s better not to give it a place.