Trading Psychology

Trading Psychology

There are some simple principles that are essential keys to unlocking the door toward becoming a millionaire, or at least gaining a little more than losing.

Have a Plan. Many traders do not realize that trading is more complex than it seems. It should not be driven by merely a hunch. A good trader is always ready with a realistic plan.

Cut your losses at an early stage and bó loyal to your profit earners. Some traders want to believe that their losses might still do well after a good waiting time. Do not be caught in the belief that every trade should be profitable.

Play Smart. Don’t let your emotions rule in trading. Always be objective with your decisions. While in the market, do not hope that it will move in a favorable direction just for you.

Do not overtrade. This is one of the most common mistakes traders make. Leveraging your account too high by trading far larger than before puts you in a very vulnerable position.One good tip is to limit your leverage at 10%; in this way, you won’t be forced to exit a position at a wrong time, before you even get a win.