How to control your emotions in trading?
In the fight for a positive trading outcome, the manager must constantly be on alert and adapt his forecasts to the market conditions. A huge number of other players, as well as financial companies, are the main opponents of the trader in the financial market. After all, if you win, someone loses money. And vice versa. Therefore, you need to know with whom and under what conditions the game is played. Despite this, the most important “enemy” of the trader is he himself.
Agree that at the very beginning of the fix api trading, each of us opened the first deals not on the basis of trading strategy, but simply in our subjective opinion. Moreover, the retention of the position took place “next to the winning” and we were ready to endure huge losses, just to “close at 0”. This attitude to the trading and investment capital has always turned out to be the same – the loss of cash.
To be successful in the market, you need to control your emotions. Personally, I believe that the psychological factors occupy the lion’s share in the success of the trader (https://www.dailyforex.com/forex-articles/2009/04/the-psychological-factors-of-the-forex-market/850). This indicator should be on the same line, together with the availability of a working trading strategy for working on the fix apiforex market, as well as effective parameters of capital management.
Therefore, I would like to highlight several methods of controlling emotions that helped me at all times.
- Set the risk parameters for your deposit. Certainly, this will not have a direct effect on your psychological factors. But if you know, and most importantly understand how much money you can lose in the context of the deal and the entire capital before opening the trading position, this will be a positive moment. Thus, when you place an order in the fix api MT4, then on a subconscious level you will know that this volume and risk are less important to you than the expected yield. Therefore, establish risks and most importantly, do not outweigh them.
- Often a trader closes his profitable positions even before the Take Profit level is triggered. This, in turn, negatively affects the financial indicators of fix api trading, and generally the financial result. After all, if you close profitable trades before their closing at the predicted level, then this should be a weighty reason. But often, this reason is called “fear”, when the trader is afraid that the growth was the last one. However, the growth continues instead. There is no sense in trading if you will fix 1% of profit and the same percent of loss. After all, you do not close the transaction until the Stop Loss level is triggered, right? To deal with this, I recommend you setting the Stop loss level to a no-loss zone. This will allow you to reduce the emotional pressure and is guaranteed to fix a positive result. You can also set Trailing Stop. If all these methods are not for you, then use the algorithmic approach for your trade- http://www.forexzzz.com/product/forex-zzz-lock-arbitrage/.
- Similarly, as the point above, the traders begin to transfer the profit-taking level to another range. Do not change your chosen course. Follow it to the end. If you see that the trade is about to close with a profit, do not move the Take Profit level. Better fix the result, because it allows you to increase profitability in the moment and it is already confirmed by your trading strategy. The transfer of the level can on the contrary reduce it.
- Use non-traditional methods, such as meditation. Personally, I thought this was not an effective method. But such an occupation of 15-20 minutes a day allows you to soberly look at the market and the situation from a different angle. Therefore, I strongly recommend that you apply this method in your fix api trading.