The 6 most common trading emotions
Fear is one of the two most frequently talked about emotions trading. Fear manifest itself a number of way trading and it can be cause of many trading mistakes
Greed is supposed to be good but when we took at hard facts, greed often causes a number of impulsive trading decisions that should be avoided. Traders who are influenced by greed often don’t
Adhere to sound risk & money management principles.
Hope fear and greed often come hand in hand. Traders who are in a losing situation often show signs of hope, when they delay the realization of a loss and give a trade more room breathe. Hope is when traders try to make up for past losses and then enter a trade with a position that is too big and not according to their rules.
Any touch of arousal when trading is a sign that somewhere along the line, you went wrong. When you are overly anxious when you are in a trade, it is often a sign that your position is too big, you broke your rules or that you shouldn’t be in that trade.
Boredom is a current state than emotion, it is worth pointing it out. Traders who are bored also often lack focus. A sign that you lack focus is when you find yourself going through the same instruments and time frames over and over again without really knowing what you are looking for .Get your priorities straight and when you are trading, don’t engage in any other activities.
Frustration is often the cause of trading mistakes that result from any of the above mentions emotions. When trades miss trades, violate their rules and lose money, take too much risk and lose too much money, or see what they should have done, frustrations starts to take over.
Can you manage above mention trade emotions you can get good point to trade and make good profit.