Interesting facts about trading
You might already know that a successful trade depends not only on the quotes and events in the market — an important factor is also the psychology and thinking. In our article, you will find interesting facts about trading and will learn how to avoid negative emotions.
Trading and psychology are directly related. One influences the other, thus, the process of trading often reveals certain psychological complexes and inability to resist stress. And this, in turn, affects the trading in a bad way — when negative emotions overwhelm players, they lose their composure and begin to make rash decisions that can lead to financial losses and, consequently, to a greater stress.
In trading, experience is no less important than in any other activities where you can not do without training, whether it is playing the piano, doing sports, learning foreign languages, or driving a car. However, trading is based on more complex mechanisms, so it is important to constantly develop your skills and think through every action to the smallest detail. That is why only regular practice and analysis of your own mistakes will help you move to a new level and avoid unnecessary risks in the future.
Size does matter. Traders perceive gains and losses relative to the size of their portfolio. This is why trading in large volumes creates unnecessary risks: serious losses can lead to emotional collapse, and a triumphant victory can lead to excessive self-confidence and a sense of invincibility, which can later play a bad joke and cause even more serious defeat and moral burnout.
To become a successful trader, it is not enough just to learn a set of schemes and be guided by them — this is not physics or mathematics, where everything can be calculated using a certain formula. Here, it is important to develop each of the strategies used, adapt it to yourself, and combine different techniques. Moreover, the trader must understand the market so well that he can literally ‘feel’ its dynamics and tendencies.
Due to market’s volatility (variability) the situation, and therefore the currency quotes, change literally every second. It is not enough just to understand this, it is necessary to take this into account in the trading. A good and experienced trader is like a sniper who makes a necessary windage adjustment.
Even experienced traders face setbacks and so-called ‘bad streaks’. If this happens, first of all, you shouldn’t lose your temper and give in to emotions. The best way to deal with such situations is to make a rainy-day fund during favorable periods, which will help you survive financial losses, making them less tangible.
By the way, you can start trading at any age, as simple as that. For example, the legendary American investor and one of the richest people in the world, Warren Buffett, at the age of 11, together with his sister, invested in equities on the stock exchange… and made a good profit!
Moreover, investors who believed in BTC’s rise and bought it in 2017, received more than 1350% p.a. as for the year, the Bitcoin’s price soared up from $964 to $14,156. And who knows, perhaps soon one of the existing altcoins can repeat its success…
So do not be afraid to trade, but always act wisely, remember, trading is a whole system based on certain mechanisms, and not on simple chance or pure luck.
By the way, you can start your way into ‘big trading’ on our TO THE MOON GAME platform — we suggest our players take part in free tournaments, or freerolls. Here you do not need to pay an entrance fee, but you can win a real cash prize! You can also watch training videos for free on our YouTube channel — experienced players who sustainably hold positions in the top of the leaderboard will be happy to tell you about their strategies and teach you how to win. Join us now!