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Don't get too excited about your first trade.

Here are five factors that affect your trading emotionally.

By PILIPublished 3 years ago 3 min read
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Don't get too excited about your first trade.
Photo by Adam Nowakowski on Unsplash

You've seen fruitful exchanging stories via online media and for the most part, youtube, showing they've become a youthful millionaire by exchanging stocks, digital currencies, forex, etc. What's more, as a human mentality, you imagine that on the off chance that they've done it, you can do it as well. Actually, like what I did in light of the fact that let's go who would not like to turn into a tycoon just by purchase and sell?

All things considered, it isn't so easy as you might suspect. You can likewise see a ton of mentors are arising these days that teach how to trade since they can procure significantly more in selling their courses about trading than what they're really acquiring from their own trades. Additionally, these tutors are truly useful however 60% of your trades rely upon you since this huge rate is your emotions, which will influence the greater part of your trading.

Below are the five emotional factors that preventing you from a winning trade based on my experience. Sharing my misfortunes for you to not make the same mistakes that I made.

1. Don't get hyped

The market will go nowhere, so if you weren't able to ride the market, don't feel left out and ride it even if the risk is high to such an extent that you're putting your money at stake because there are endless opportunities for this business. Don't listen to anyone who will say that it will still rise or fall no matter what because, no one knows what will happen to the market, even analysts and professional traders fail in predicting the direction of the market.

I remembered on my first week in trading when I got hyped and bought this new company in the stock market, I didn't review the company I just bought it because everyone was buying it and I didn't know that it was already overprized when I entered. Few minutes in the market and I gained 20% more but then the stock came crashing in just the blink of an eye, and my world crashed from winning to losing half of my portfolio.

By Verena Yunita Yapi on Unsplash

2. Be patient

After learning all about fundamental and technical analysis and all sorts of strategies, and courses are taken, you now apply what you learned together with the right timing. Timing is everything. You don't enter the market just with the perfect lining of strategies alone, you must learn to wait when to enter and when to exit. You gain more for a win and lose less from losing.

I got excited to enter this rising stock that it didn't matter to me that it's at its peak based on the chart and at a higher risk. And then you guessed right, it went down that it hit my stop-loss. But if I waited for it to breathe out first and bounce off, that should be the time to enter and may gain based or loss but at a lower risk.

By Cameron Venti on Unsplash

3. Stick to your strategy

If you already set your profit target and stop-loss, stick to it. Do not take your profit just before hitting your target or cut losses just before hitting your stop-loss because that is not what you strategized before entering the market. It will do you more good when you follow your strategy than being scared and listening to your instinct.

And also don't be greedy. If your profit target is reached, exit immediately, don't wait for more gains, if it's not in your plan. Don't wait for a win to become a loss.

By Anne Nygård on Unsplash

4. Have no fear

This comes with a stick to your strategy from number three. Worry not if you hit your stop loss, that's the market anyway, it's not always a win. However, you will gain not only by the right strategy but having no fear whether you win or lose. The market is very volatile, so if you get scared easily and always exciting early you will never gain anything.

By Tonik on Unsplash

5. Take a break

Consecutive losses will affect your trading strategy by wanting to enter the market promptly without considering your techniques to acquire your misfortunes from the past exchange. This will lead to more losses due to unplanned trading. Get up and do some walking or stretching so as not to enter more losing trades and reflect on what made you lose constantly.

By Kylo on Unsplash

Hope this helps and will keep you from 99% of unsuccessful traders. And also please share your experiences and let's reach our first million.

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About the Creator

PILI

I'm a fan of everything, an artist by heart, mainly an avid explorer.

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