Tuesday, May 2, 2017

The importance of psychological stability in trading!

No matter how great the trading strategy is, as long that the psychology is not attuned to the market the trader will always end up a loser. This is how important psychology is in trading, many traders may ignore or not giving attention to it but it is the most reason why traders fail over and over again. If a trader is trading under emotional pressures  it will be just a matter of time that his trading capital will be wiped out, guaranteed!

Achieving emotionless trading can be a hard battle probably for almost all traders but it is an important factor in becoming a consistent profitable trader, especially if you chose to trade manually.

But,what do we really mean of emotionless trading, some traders may have different interpretation about it but based on my experience it is all about being not afraid or worried of what is going to happen to a particular trade(s) whether it will win or loss.

How a trader reacts to a particular trade(s) is a key factor to his future trading performances,if he feels betrayed, disappointed or angry the moment his SL is hit or maybe becomes very confident after got a run of winning trades then chances are that particular trader is still making trading decisions based on his emotional tendencies and dont be surprised in a matter of months his trading capital will be gone.

We are emotional by nature but again I will always say this you cant bring emotions in trading, find a way not to let emotions  interfere in your trading its the only way to be successful in this market and that is what professional traders do. You may say I am a fool, emotionless trading is not achievable in trading, but I say it is possible and it is the best way to be a successful trader.

Professional traders are focused on following their trading rules, they don't care if a particular trade will be a loser or a winner, what is important to them is to implement the rules, there is no point of analyzing or build a case about a particular trade because he knows that every trade setup is random and unique, but what he knows is that he has a stable strategy and as long that he follows  the rule religiously he will end up profitable in the long run.

Good luck and happy trading!

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