People who trade in stocks, Forex, and virtual currencies are humans. Everyone has ups and downs in their mood. Feelings may vary depending on the time, such as when you are happy, when you are sad, when you are lonely, or when you are angry. It is natural for human beings to express emotions. However, if you bring that feeling into the market, you will lose with a high probability. Rather, it is the time to win only when you are calm and trade. This time, I am writing an article about the mental state that should not be traded.
The market is a microcosm of human emotions
Whether it’s stocks, Forex, or cryptocurrencies, the market is always swayed by human emotions. The market chart you are looking at is formed by human emotions. If you’re scared, you may drop your position quickly, enter angry, or even be happy and enter with momentum. However, whenever you enter with emotion, you will fall into the market trap. Entry with emotions is the same as thinking with 90% of losers. If you enter with the momentum of the moment, you will be sent off eventually.
When you win big and get excited
Entry is dangerous when you have won a big win in the latest trade and are excited. You are so excited like boiling water that you can’t keep calm. you often enter with momentum and get a big hurt. The reason why this happens is that there is no advantage in the position because you entered without thinking about anything.
When you lose the loss
Entry is dangerous when you lose the most recent trade and are full of anger. Most of them lose because they want to get it back or enter with the momentum of the moment. Also known as revenge entry, in most cases you will enter without thinking.
Emotional control is difficult
Human emotions are difficult to control by force. Because humans are not AI. At that time, it is natural to be happy or sad. If you control it, you will have a lot of stress somewhere. However, when you are emotional, you often cannot win even if you trade. So what do you do when you’re feeling emotional like this?
Countermeasure 1: Do not look at the market price
It is advisable not to look at the market when you are emotional. It’s often hard to win when you’re emotional, so you don’t have to trade for a while. Let’s do other things. Sometimes I take the plunge and go on a trip.
Countermeasure 2: Sleep
When you are emotional, you may not be able to calm down after a while. At that time, it is recommended to take the plunge and sleep. You can wait at least a few hours if you go to bed. It is a very effective means because you can switch your mood.
Countermeasure 3: Hobbies, work
When you’re feeling emotional, take the plunge and do something different. It doesn’t matter if it’s a hobby or a job. You may be calm by doing something else this way. Thinking about trading poorly can also be frustrating to remember. Have a hobby or work that you can immerse yourself in.
Do not force trade
In summary, it is important not to force a trade when you cannot be calm. Any professional trader can be emotional. The biggest trick to get a total plus is how to trade calmly. Even a professional trader cannot win if his spirit collapses. Let’s be sharp when trading and when not trading.