Is psychology important in trading?
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I have been sharing information about where it is better to invest in times of crisis and also why it is better to do so, which is the platform that offers better tools to enter the financial markets, however, it is not only about placing money in an asset and wait for it to generate income by itself, we must have an investment plan, an appropriate system that allows us to minimize all possible risks in it and thus have a greater chance of success.
But what exactly is needed to be able to invest in the financial markets, I have talked about the Technical and Fundamental Analysis, but it is all we need to emerge as investors?
This is a quite interesting question, answering it would clear up many doubts, but we are leaving aside something very important that every investor must have and as it says in the title of this publication, that other really crucial aspect, this is Psychology, it might not make much sense, but the reality is that in my opinion it is something very important, since in it comes the handling of our emotions when investing and believe me if we do not have control of these, we will surely lose.
Emotions and Psychology
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As human beings that we are, we have emotions that come out when we go through certain things in our daily lives, this is not the exception for investments and trading and it is extremely important to manage it, because when we enter the market with real money, we are always going to be waiting to see which direction the price will take, if we will win or lose, if it is better to get out of the market before losing more or leaving our investment longer to give the chance to recover the asset. All these things go through our mind at the time of investing in the blink of an eye and it is with psychology that we will control them and of course a so-called trading plan.
Trading Plan
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I am not going to explain much about the trading plan, since in a future publication I could speak more clearly about it, however, it is crucial to have a plan to eliminate those emotions from our operations and add psychological aspects that will help us with our investments, so we should only be guided by these things that I will detail below:
- Follow the established plan no matter what happens, so that we eliminate all emotion from an operation
- To have a good risk management in each operation.
With these two things, our account will be totally controlled, both in risk and in the way of trading so we minimize the trading risks and we should only look for opportunities in the markets according to our setup, that is, our configuration and conditions to take an entry, so that all the probabilities or the great majority are in our favor, that is trading, besides of course being constant in it.
The necessary constancy
The market often tests us, even with our trading plan that can override these emotions, some trades can come against us, and this is when many also begin to question whether it is for them trading, however, our greatest strength against this, is to be constant, monitor each trade and realize that we fail, refine our strategy and move forward, of course by having our risk management at its best, we will have many opportunities to recover and improve over time, this is certainly a key and personal tip that should be taken with you.
Conclusions
Trading is undoubtedly my passion, I have had to educate myself constantly to be able to trade correctly, I have lost money like everyone else, but I have learned and refined over time, in my beginnings as a trader I never had anyone to give me the necessary advice to be successful, it was only my task to move forward, for this reason for all those who are starting, take advantage of all this advice that I share with all the willingness of the world and that through the project of which I am co-founder, we also educate many people, guiding them in this direction.
Don't forget that if you want to know more about all these topics you can contact me through the discord server that I leave below, our mission besides being able to educate you is to create a solid team of traders from all over the world, with which we can invest together and take advantage of the markets as a team, this is the key to success.
I am Co-founder of the @erarium project, in this community we offer training processes in trading, finance and economic management. Consider joining our official Discord by clicking HERE.
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@tipu curate
Upvoted 👌 (Mana: 12/18)
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