Tricks That Day Traders Use to Control Their Emotionsby Fintech News Singapore November 11, 2020
Forex day traders use a shorter timeframe for their trading, which is quite stressful. There are several problems that a beginner may face when he wants to enter the market as a day-trader or chooses a shorter timeframe. Let us make it clear what kind of problems these people have to deal with.
Firstly, it is a trading that has a shorter timeframe. Therefore, a newbie has to make quick decisions and keep looking at the screen to figure out an ideal spot to enter a trade. Trading with a shorter timeframe becomes too tough for the newbies as they need to make decisions fast. It leads to wrong decisions, and they end up losing their trades. Investors often decide emotionally, which is even more dangerous. So, it is important to discuss how professionals control their emotions and make decisions accurately.
How day traders control their emotions
1.Always take a break after a trade
These investors receive many chances to enter a trade, but they handle this situation with their knowledge and experience. They know very well that entering a trade too frequently will be stressful. Remember the fact, futures trading is a very challenging profession. The experts in Singapore have spent huge time in mastering this skills. Unless you are passionate about this profession, you should not become a trader.
Taking a break after a long trade will give a beginner time to rearrange his thoughts. By this time, he can find out his faults and can modify his existing strategy. Experts recommend taking breaks after a while. Remember that as a newbie, it is possible to become too emotional and make wrong decisions.
2. Identify the high and low volatile period of the market
The Forex market is known as a highly volatile market because nobody can predict when the price will go up or move down. That’s why one can easily make profits in this market, and at the same time, others can lose their money on this platform. During a session, it is better to find the period when the market is less volatile because, at that time, you may make less profit and can minimize possible losses.
It is regarded as an easier solution to take a break from this platform when the market is static or in consolidated condition.
3. Take a break after winning or losing trades consecutively
Professionals always suggest that a beginner should take a break once he wins or loses a few trades in a row. After winning a few trades, rookies think that they should trade more often to make more money. As a result, they start increasing their position or lot size and take higher risks. At the same time, when an investor loses a couple of trades, he loses confidence and doesn’t want to enter the next trade. As a consequence, he loses several good opportunities. Instead of getting overwhelmed or frustrated, these traders should take a break from the CFD industry.
4. There is no need to calculate the losses or profits during a trade
Sometimes, during the ups and downs of the market, the investors become emotional and start calculating their profits or losses. Experts forbade the rookies from this kind of thought, which impairs the concentration of the trader to find out the exit point.
Psychology plays a vital role in destroying the trading career, and during the trending market, the inexperienced people make wrong decisions and lose that trades.
5. Sticking to the strategy
This is the final tricks that the day traders follow to control the emotions. They adhere to their strategy in a disciplined manner to develop their trading routine and lifestyle. In addition, they keep a trading journal to keep notes of their performance, which is essential.
These are the five ways that the experienced investors follow to overcome their emotions and improve their career in the Forex market.
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