I decided to state out some tips I use when trading, am very sure it will be helpful to the community, either you are using technical analysis or fundamental analysis to trade ,it's apply to both analysis
My tips on how to control your emotion in the market comes from alot of experience, which already give me lot of pain before I realized all this , remember experience will surely comes with pains,
it's doesn't matter the years you have been trading the market or months if you did not master your emotion and how to use in to your advantage you will never make profit from any financial markets, either from forex, crypto or stock market
From my little years of trading in which mostly loss,I came to realize the market doesn't play on the chat ,the market plays in our body ,what do I mean by this ,we the market,we fight with ourself to make profit in the market,every strategy is good to trade the market but not strategy is 100% correct and any strategy we are using only covers 20% in our success to make profit in the market,so if a trader focus more on how to fight himself,he will surely makes profit in the market
Capital
The first thing to look out for is the capital to start with ,to me capital doesn't have a specific amount because I have read alot of book that specify some amount of money to start with like 100 dollar or More,they are many factors that determine what kind of capital you are to use
, first is the kind of market you are going to trade second is your portfolio,the money you can forgone because the rules says never trade with your emergency fund, because if you do that you are adding to your emotion when trading
Money management
Money management is the most important aspect when trading,I can equally says it carries 70% of trading, money management is when makes you makes plan on your risk to reward,risk to reward ratio defers ,
it's depends on that particular trade you are about to trade ,it may be 1:2or1:3 it's may even be 1:20 you just need to be re-adjusting your stop loss and take profit till the market hit any of the two and this doesn't apply to certain dollar to use because have sean some book that you need to use 2% or 3% of your capital to risk
,this depends on the amount of dollars you think you can risk just makes sure it's 1:3 ratio,I recommend 1:3 is because even if you enter 10 trade in a day and you win 4 or 5 you will still make a lot of profit
adjust your position
This as already help me a lot in the market,even if you did not makes alot of money, adjusting your trade position will cut your loss when trading, adjusting your position is when you move your stop loss entry to your entry point when the market have makes some move because market may reverse when you are not watching it
But moving of stop loss as a rules ,you don't just adjust your position because the market make a move ,you most makes sure the market have make movement of at least 30 to 40 pips or when the market have form a new higher low or lower high
There are many things that determine how we can prevent emotional damage in the market,the one I mention is just few ,I will mention more in my coming post,you can check my page coming days ,I hope the one I mention is helpful,you can help with the reblog and upvote and will also appreciate your comment
Thanks for reading
God bless you , God bless me and God bless hive community
