Only Psychology will earn you money in Trading in Long run.

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There is famous quote by one of the most successful traders in trading history.

"Money is made by sitting, not trading." - Jesse Livermore

Many people believe that trading more and more is the way to make money in the stock market. However, in reality, most traders lose money. The reason for this is because they are not patient, and they do not know how to manage their emotions.

An amateur trader display patience when the trade goes against him. He keeps the losing trade. However, when he sees a small amount in green, he becomes impatient and take out the profit early.

Even if he makes small money in most of his trade, in the long run, he will lose money because of the huge losses.

In initial days, even I blew up my account in just three trades. I had one of the biggest losses where I kept holding the loss-making trade. I decided not to repeat it again but just in the next trade, I lost huge amount again. The reason was same. I could not cut my losses and kept praying that the market would reverse.

This management of emotions comes under trading psychology. So, what is trading psychology actually?

Trading psychology is the study of the emotional factors that influence a trader’s judgement…