Sunday, 1 July 2018

An Effective Way To Deal With Trading EMOTIONS

Getting to the Forex market has been the dream of most people who want to get big in life, but it has not been easy as it seems to most traders in this industry. Success in Forex and Stock trading is of very high possibility as we have seen huge number of millionaires booming through the industry.



Why do most Traders don't make it?
Success in trading Forex and Stocks does not happen by luck, Yes for some it may happen by luck and trust me that money made by luck will also be lost because of bad luck. you cannot guess the market as it can been very tricky to most traders.

Traders don't get a chance to learn about controlling their emotions, they don't get a chance to learn about the Discipline that has to applied in trading the markets, Below is a list of ways to deal with trading emotions.

7 Effective Ways To Deal With Trading EMOTIONS

1. Use The Correct Risk Management
Proper Risk management is key when it comes to trading the financial markets, traders tend to trade with very high risks as they want to reach millions very fast which is the biggest mistake that most traders make as they start trading. trading with wrong risk management can cause high levels of stress to most traders as they encounter a losing trade which can bring you emotions that will cause you to trade under emotions and panic.

2. Avoid over trading 
Over trading is the biggest mistake as it leads to account over leveraging, this can lead to a huge decrease in margin for an account, stick to a certain margin requirement for your account size.

3. Reduce the number of Pairs Traded
Confusion is the last thing that you would want to have when managing funds in a trading account, having a lot of positions in a number of pairs in an account can bring a lot of confusion to both new and professional traders as it can be very difficult to master every move that is being made by every pair you have opened.

We Recommend that you stick to a certain number of pairs and master their movements.

4. Open Trades Based The Trend
Your Best friend in the markets is the trend not yourself, stick to the market trend to improve your rate of winning, trends often last for 3 months and trading against it means you are taking a position again a three month possible move.

5. Have a Trading Plan
Have a plan, every weekend you need to have a plan on how you will trade each trading week and stick to that plan and stick to the weekly target.

6. Avoid Trading with very small Funds
Trading with very small accounts is nothing more than giving away money in the markets, small accounts often don't survive certain price reversals, and it may create a lack of comfort for the trader as their accounts gets wiped. we highly recommend traders to save funds and start with efficient funds.

7. Close Losing Trades 
We traders are quick to close winning trades and tend to leave losing trades with the hope that they will come back to profit, such trades are very less likely to come into profit before they blow your trading account.

Handling Emotions Professionally is a must to win as Forex Trader, always stick to a disciplined trading and avoid emotions that can harm your trading career. 

Sifiso Nkwanyana

Author & Editor

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