How does a trader's psychology help to cope with fears?Johannes Röll 11 / February / 20 Visitors: 166
How does a trader's psychology help to cope with fears?
The whole psychology of a trader comes down to working with fears. There is a lot to be afraid of, because a person operates with huge amounts of money, radically changed the work and wants to be a successful person. The market changes under the influence of many factors, providing one person with an opportunity to increase his or her capital, and another person with a chance to lose a deposit up to the last cent. So how can you cope with your fears by achieving the balance of successful trading?
The trader's psychology says: first you need to find the reason for your fear.
Suppose you have an acquaintance who opens deals quite impulsively and as a result loses a considerable part of his deposit. In this case such behavior is a consequence, not the reason itself. A person is afraid to miss the opportunities provided by the market for earning money, and therefore tries to stay in the game as often and for as long as possible, hoping to increase the deposit.
However, the psychology of trading says that this approach is fundamentally wrong. The market is not going anywhere. Its movement is conventionally infinite. But the disorderly opening of many deals is a way to quickly waste your wealth, not to exaggerate it. You have to follow yourself in a situation where trading is calm. Analyze why this happens, what emotions accompany the process, and whether the trading result really gets better in the end. Then consistently, you should try to repeat the actions that led to success. Outwardly, it will look like a great discipline.
A trader has been afraid of a few things since the beginning of the game on the stock exchange:
The loss of the entire deposit. The psychology of the trader shows that everyone is afraid of this.
Poverty. A life without money is unlikely to seem attractive to anyone.
To be proper for somebody. This obligation is a moral pressure, not allowing relaxing. How does the psychology of a trader gives the opportunity to cope with fears?
Critics. Nobody wants to be called a loser.
Loss of reputation in his circle. There could be a lot of egos in here.
So what do the experts recommend? The psychology of trading, the tools and methods of its work are to perform several simple actions:
Tracking the market, accompanying trading with records on a paper sheet, commenting on what is happening.
First, to put a small amount of money on the account, so that the losses of finances are not too upsetting, and victories give a reason for joy, but not euphoria.
The easiest way to get rid of fear is to constantly educate yourself. The more a person knows, the more diverse are his or her answers to important questions.
Constant communication with successful traders gives motivation. You can do the same as they do. How does a trader's psychology help to cope with the fear of making deals?
Important! There are always people who don't want to see you happy and successful. They will say that you can't do this kind of work, and you have to give it up. The psychology of a successful trader says: do not listen to anyone and go your way. Many successful traders have changed a lot of jobs and suffered a number of failures before earning their millions. So believe in yourself, and you will succeed!
Johannes Röll was born 1978 in Brilon,Germany. Graduated RWTH Aachen University. Over the past ten years he worked as Head of the plastic card team, where he was mainly responsible for the development of the distribution, Head of sales Department and Financial Analyst,where he got experience in planning and support sales figures for branches. For the present he works as freelancer