Tips For Overcoming Emotional Factor When Trading Forex. One day we are faced with a choice of investment, where without we realize, that condition our emotions are less good as we expect. Perhaps this is what often becomes a cause of why we always do weird habits and sometimes makes us to take something that is not rational.
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In fact if you include those of a rational parts? such a question may be from our own, sometimes less understand, then to be able to answer it you can find in the description below.
In fact if you include those of a rational parts? such a question may be from our own, sometimes less understand, then to be able to answer it you can find in the description below.
The Fear Of Regret
The feeling of fear of a regret is a condition in which the emotions of a trader is being affected, a trader will realize when he has made a mistake. Example: a trader open Buy position has been doing, and fixated on the price for which he did buy. When prices are falling, moving unconsciously she emotionally involved with the price at the moment he does open position Buy. Then, he tried not to shut down the trading position. As for avoiding remorse has made a wrong trading decisions. He was also embarrassed when his position that loss is known to others. With the situation and condition as it is, actually, what we have to do? You can illustrate the condition by asking yourself, "will I be back doing a buy back at a position that's been this loss I close?" If the answer is no, then it is time to close your position. The fear of feeling sorry and ashamed to admit a mistake is sometimes even bring us get heavier remorse.
Entangled By A Mental
We sometimes tend to be emotionally swayed against market conditions are good or bad. Market situation like this difference often affects many of the emotional side of a trader. While investors tend to be optimistic when the market was booming. As a result, they become more patient to wait to get a bigger profit. However, when faced with a recession-ravaged market conditions, without hesitation they quickly sell his position in order to get a small profit.
Over Confidence
Sometimes we often looked at ourselves too high. When we managed to do a few times in successive successful trading – also, we feel that we can beat the market. Emotional conditions such as this would normally lead to excessive trading positions, the cost of a large trading commissions, as well as the possibility of a bigger loss anyway.
Conclusion
The vagaries of the market conduct – the perpetrators of so-called behavioral economic. Many studies conducted to observe events like this. And the result, behavioral economic like this often clashed with academic economic theory. From the explanation above, it could be said that our great enemy is ourselves. Identify conditions such as what makes us become lost control over ourselves. By understanding what is happening with our emotional side when trading, we can hopefully avoid mistakes – trading mistakes like this repeatedly – reset.
Source: seputarforex.com
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