Trading Psychology - 4 Quick Tips.

Trading Psychology - 4 Quick Tips. 

Emotional state, the average trader - greed, fear, hope and regret 

Trading is not an easy game. You have to win or loss and learning is one of the world's most patient man. But there is a deeper hidden side deal, no one really talked about these days. This is the psychology behind the transaction or trader psychology. 

We humans have a lot of mental state, but as a businessman, a more intensified drive our decision-making process most personal emotional state. These highly emotional state of greed, fear, hope and regret. 

The stock market is known to be a game of chance, but you must understand the daily movements and volatility on the market is more than just emotional group of people just like you and me, is determined based on their emotional state. 

If you can understand these emotions, you will have an edge when trading for others. Will always be a clue for you every day, but the shrewd businessman knows the signs are subtle, and sometimes difficult to understand, but to see an example, if you can master the recognition, you can maximize your opportunities always win in the market every weeks. 

Greed is what? 

We can define the greedy desire to have three things: - 

1) personal satisfaction 

2) more money 

3) wealth. 

When we talk about the terms of the transaction, we can define it even further to admit a businessman, a real desire. To find the moment trade in a very short period of time to capture the unrealistic profits. 

Here is greedy, when all traders how much money they can see is not much money, they might lose something going against them. 

The thing to remember here is not the actual profit realized profits until the position is closed. Until then, all of the profit is only book profit. Greed can lead traders ignore the appropriate risk management procedures, and increase their risk of losses. 

What is fear? 

This is the most talked about one emotion in trading. It is also the sentiment of all traders struggle from time to time. Fear! 

We can describe a distressing emotion, which is our human brain response, biological implants things in our birth fear. It led to a survival response, whether we are a direct threat or something a little more independent. 

All human emotions, fear is the most powerful. When you trade, the fear can take over and lead you to sell positions, or even buy worry you missed a rebound. Fear can cause us to panic and make stupid mistakes. 

Fear can be a bad deal, but it also allows you to take profits too early position. You can not panic, jump the gun only to see prices take off again. 

Emotional memories from the previous fear seems to be triggered. Did you ever think when you lose a significant number of money in a particular trade. Many traders Unfortunately, these horror stories, however, fear can come in and remind us in the past and lead us away from. If you are afraid to enter the establishment of quality, is really meaningless deal. 

Hope is what? 

Next, we have hope! 

This is a primitive emotion and expectation that something will happen. It is a want or need, and expected results. 

This is a dangerous human emotion when it comes to the trading world. Hope is what makes a deal to lose again and again consistently. 

Hoping to prevent traders profit-taking, his position in a successful or profitable position. Traders have a habit of thinking that he can beat the market, which is impossible. A trader usually hope, his stance rebelled against him and refused to let him stop playing a certain level. He believed and told his position will come back to his entry-level, then profits, then the position he has in the past, damage is so great that a sense of hope into a denial of certain aspects. 

Usually want to take over your mind, the market will punish you beyond your worst nightmare. People living in the hope that traders face enormous risks and in the market, the greatest harm. It may not happen today, but when they least expect it. 

Unfortunately, what is? 

Finally, we have regrets. 

Many traders can relate to this powerful emotion, when it comes to trading. The reason is because it goes hand in hand with the other three hands of the powerful raw emotions. 

Unfortunately, a watered-down depression or grief, what has happened as a businessman. Especially when it involves loss or missed opportunity. 

This can also be feelings of why and how things turn negative situations. Traders often ask why, but soon realized that the damage is to ask yourself the question can not recover damages. Then, traders will further two degrees of guilt and further regret. 

Unfortunately, the positive thing is that positive emotions can come from this. Lessons learned and transaction who can go, usually used mistakes and learned to make better the next time the industry. A good trader will be some regret, but he was able to move and use the mistakes of the past in a good way. 

We all grow older and make mistakes. Life would be very boring if we go about our day to do the right thing. Therefore, as a trader, you must realize that, along the way, you will make a lot of mistakes, but the second part of this implementation, the next time, they can help. Mistakes should only occur once. Learn from our mistakes, not repeat them. This is the best way to become a self-educated businessman who could maximize his profits and minimize their risk.