Importance of psychology in trading
As I advanced with trading there are some aspects in which I have deepened, I would like to talk about some things that I have had very present lately, more and more, and are indispensable factors to be able to stay profitable in trading.
I know that the users who make life here, although not all are properly dedicated to trading I know that they know what it refers. I also clarify at this point that I have not been trading cryptocurrencies but in the Forex market.
I know that for most people the Forex market can be "very manipulated ", however, I think it is like any other, you just have to learn to know it.
Well, something that is unquestionably necessary to be profitable in a market is to have a strategy, test it, improve it, study it and never stop doing it, but beyond this, I think there is a factor that plays an equal or greater role than the strategy, and this is the psychological part, which by the way, is what is paid less attention to.
I know that some people think that a good strategy is enough to be profitable, however, I don't agree with that, although I respect it, of course. Because psychology, emotions, in everything we do always has a great weight, and in this that we call trading, where there is money at stake is no different.
One of the things that have helped me to improve is to understand this, to know and accept that controlling my psychology implies that I will be able to have better entries, to maintain them, not to close them prematurely, to trust that I am entering in the direction that the price is most likely to go.
And something very important is to know that when opening an operation we have the possibility of winning but also of losing, and if the latter happens, accept it, because it is within the options, we cannot pretend to enter a market without accepting the possibility of loss, otherwise, we will be condemned beforehand and our psychology will play against us totally.
I wanted to share this way of seeing what can affect, positively or negatively, your trading. I would like to know what you think about it. Regards.
Hello @josevas217, You are very right in stating that the psychological factor is not given due importance in trading and Forex, even in other aspects of daily life, I might add.
When a person gets involved with trading, they may have the false perception that it is handled in the same way as bets where "sometimes you win and sometimes you lose" and you have to count on a lot of luck, and this is not the case. Behind each trading operation there is a decision that has been supported by the experience and good judgment of the trader and where obviously he will not always have the upper hand because the markets can fluctuate without prior notice.
How important it has been that you showed this topic for us.
See you soon.
Trading is a matter of probabilities, but when the trader's role is to use different tools to determine which move, up or down, is more likely to occur.
This is the heart of the matter. And the emotional, the psychological is indispensable.
Thank you for your comment
I always say it that to trade, one really need to be emotionally matured
I totally agree, if you don't end up suffering every moment.
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Thanks my friend.