Any trading strategy will be absolutely pointless if you cannot control your emotions and have not developed a special, #trading psychology. You must have three main components: mind, money, and method. It doesn’t matter how much experience you get in price action if you don’t understand how much your state of mind affects trading and how emotions can lead you into trouble.
Failure to do this will result in you never earning here. Therefore, you need to make a CONSCIOUS ATTEMPT to manage your emotions during trading. So as not to make gross mistakes. For example, entering the market when there is no suitable setup in it or risking too much.
Without a conscious attempt to understand yourself, your mindset and your emotions, the market will simply devour you and spit it out so quickly that you can’t even imagine. In trading, managing emotions is a very necessary art. Let us consider in more detail three seemingly difficult emotions, on which the trader’s work in the market depends: Fear, Hope, and Greed.
💣 The role of fear in trading
In fact, fear plays a significant role in the market. Fear often deprives the trader of the opportunity to earn money, saving him from making fatal decisions. The emotion of fear often serves as a kind of “brake” for the trader. A frightened trader is obsessed with the adverse aspects of trading.
💣 Hope dies last
Of all three emotions, most market participants live in hope. This emotion is completely opposite to fear because its presence influences positive thinking regarding trade aspects. In moments of hope, the thinking of market participants is aimed at making a profit, not losing it.
💣 Greed destroys traders
Greed is a disastrous and dangerous feeling, especially for a trader. The prevalence of greed rarely can help to achieve the desired result, depriving people of the ability to think soberly and objectively. Often, having felt success, a trader wants to earn more and more by making the following mistakes:
🔻 Untimely exit from the transaction
🔻 “Outstay” in position
🔻 Overstatement of risks
People trade in order to achieve success and financial stability, taking income from the market. The circle of such people was divided into optimists and pessimists, absorbed in hope, fear, and greed, only to different degrees. One way or another, an overabundance of these emotions can lead to losses. The best option is to find the middle ground and learn how to manage your emotions. Always remember that emotions tend to control a person and influence making trading decisions that are not always beneficial to you.
🏆 SwapZilla advanced tools for making well-balanced decisions
💎 SwapZilla helps you to keep your emotions in check. Statistics Module provides you with tools for a detailed #analysis of the #portfolio, where statistics on features like volatility and risk are calculated automatically. You will also be able to carry out statistical analysis of any assets and their impact on the current portfolio. By using #SwapZilla, the client will be able to conveniently analyze his portfolio and make informed decisions about changing its structure, as well as statistically evaluate the optimal portfolio structure of current assets based on minimizing risk or maximizing profitability.
💎 To open and close positions through the SwapZilla platform, different types of order executions will be available: a market order — for buying or selling at the current market price — and a limit order — for buying at a price not higher than the specified or selling at a price not lower than specified.
💎 SwapZilla Strategy Creation Module will allow the user to develop and test one’s own trading strategies, save the best ones, and use them in the future. With Portfolio Management Module the user will have access to tools for managing and optimizing a long-term investment portfolio. The algorithms integrated into our platform will allow the user to choose the optimal dynamic portfolio structure (asset weights) based on maximizing its profitability or minimizing risk.
📢 Use SwapZilla advanced tools to make informed and well-balanced decisions! Start trading now!
