Trading Psychology | Finding The Balance When At Market Loss

in #hive-1679222 years ago

Losing money/investment is something that we are prone to when we make inappropriate decisions, be it in the crypto space trading foreign exchange(Forex), stocks options to mention a few.

When it comes to trading 80% of our mentally is on buy options that made profit not the ones we fall short we fail to take a look closely to see reasons why it happened and also come up with better strategies that will possibly reduce loss rate.

Being a successful trader requires a lot of practice and planned out strategies to avoid loss, or reduce it to the barest minimum and also understand why some of your trades lost money.

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Couple of years back before I had any interest in cryptocurrency and the opportunities lies within, my interest was on Forex. I totally understand that it’s a volatile market was but still yet I really didn’t want to lose my money instead of me trading I handed it off to a self acclaimed trader and it was a history I really want to put behind me.

Having a clear understanding about the market averages would go a long way to when making buying calls, as majority of traders are just concerned about profitability.
In my early years of trading I had no trading strategy which is employ i just go with the feeling and intuition I have as regards the trade or buy call.

Sometimes I stay profitable or I just crash out of the market.
As an individual investor understanding this is key in order not make better decisions.

A trader should have a proper understanding of what risk management is cause it will help in making decisions as regards trading and also reduce the act of greed, because trading greed kills more faster than you think it can practically leave you bankrupt.

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Twitter: Hironakamura

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