What is trading psychology?
A good trader must be daring, often place orders in short notices and forced to make swift decisions. Trader will need to be mentally sound and have a clear idea of what they want to do. Emotions do get in the way but never allow emotions to control your judgements.
Every one has their own fear. When you look at your trading status, you feel happy when you see green and fear immerses into you unknowingly when you see red. It is not uncommon for traders to be afraid when certain speculations about a certain counter is released. When fear starts to control your judgement, you might overreact to situations and got yourself into even higher risk. It has to be a swift decision whether to buy or sell when such situations occurs.
Never allow greed to win your sense of judgement. Because we have the mentally that the counter could do better, a little better, trying to get a little bit more profit, ended up, this instinct might land you into a loss rather than profit in just minutes. A good trader should make rational decisions, develop a good trading plans and never let your emotions to run over your judgements.
Before any trade is done, one has to be able to read, analyse and have the right platform to perform their trades. Research more about the counter you are looking, setting own trading rules and getting advises from experienced traders are all simple steps one should to lower their own risk.
