Emotions are one of the barriers that prevent traders from making profits. This is prevalent among beginners because they don’t have sufficient knowledge to deal with certain situations. Several situations may take place in the industry. For example, during the market recession, the traders don’t realize what to do and what not to do. Some people don’t even close their trades. Another common scenario arises during an uptrend. Without analyzing the industry and the imminent flow, the novice traders jump in placing their deals by taking a greater risk, which ultimately results in a massive loss.
In this article, we will share some of the best tips to overcome the emotions and other psychological problems that new investors often face during trading. But before sharing these tips, it is necessary to learn about the emotions that are related to activities.
There are three common types of emotions, and each of these has different ways to ruin the possible opportunity to make profits in the currency exchange industry.
Greed is prevalent to those traders who want to earn a huge amount of money within a very short period. Greedy novices increase their lot size and don’t even place the stop-loss limit. These people may become successful for a couple of trades, but soon, they face the real consequences of the market during a recession.
After losing a couple of trades, novice traders don’t want to any place deals because they are scared of losing more trades. These people … READ MORE ...