Trading and Emitions

FEAR and GREED, these are the two emotions traders deal with. We all deal with them, either you are a pro or beginner. Knowing who you are is very underrated, especially in trading. We all need to take some time out to study who we really are, just the way we studied hard in college.
Emotions can make a big difference on your performance in trading, only if you know how to mange and control them.
Psychologically, our brain is not wired to make us successful in trading. The brain always find the easiest way of doing things. Which means, no much thinking is needed. Whereas, the opposite is the case in trading. Deliberate thinking is needed to call the market. So, mastering who you are and being deliberate in what you do is very important to your success in trading. Doing the right thing at the right time, regardless of how you are feeling, that’s deliberate thinking. Think about when you brush your teeth in the morning, you rarely think about it while doing it. It’s a no brainer, right? Can you do that while trading? I can remember the last time I played chess, the guy I played with wasn’t even thinking before moving the pieces. He had played a lot of times that he even forgot to think before moving the pieces. He was a pro by the way.
But the situation is completely different in trading. Trading requires deliberate thinking and actions. It’s something you must have spent a lot of time on before making any action or executing a trade. Apart from the fact that money is on the line, you don’t want to burn yourself with too many losses. That will only create unnecessary fear in you. Failing or refusing to think is only telling your brain to get used to not thinking. By the time you need to make critical decisions, don’t be surprised when it fails you.
FOMO (Fear of Missing Out), we all deal with it, right? It’s the feeling we get when we think the market is moving and we are not involved or have an open position. Even though the market will end up going against us, we will still go ahead and open the position just not to miss out. But do we really have to be in the market all the time? If you have no reason to open a position, don’t open it. It’s as simple as that. Most of us have lost a lot of money before we realize the simple truth.
Greed is another emotion we deal with. Being greedy in the market is okay, only if you know when to be greedy. It can make or mar you in trading. That is why having emotional intelligence is very important. Having the ability to make the right decisions regardless of how we feel at that moment. Making this kind of decisions on a day to day basis will help us progress well in trading.
The truth is we can’t run away from our emotions. Dealing with them and managing them is emotional intelligence. But if you are that type that doesn’t want to deal with your emotions, it’s better to go do something else with your time. Trading might not be for you. 

#OPINIONLEADER# #TradingPsychology#