Achieve trading success by avoiding these five bad habits

by , 22 May 2015

The psychology behind every trader has a big impact on the way they trade.

It's important you identify the emotions that trading triggers and avoid making decisions based on them.

So how can you beat your emotions?

Read on to find out…


How to stop your emotions from interfering with your trading


Don’t let emotions negatively impact the success of your trading. To overcome them, don’t fall prey to these bad habits…

Bad habit #1: Responding to fear
Fear stops you from acting rationally when you trade.

It can make you sell out of a winning position before it hits your take profit level. It can force you to close a trade without giving it a chance to get going.

Bad habit #2: Being greedy
Greed can play havoc with your trading. It’s vital to remain disciplined.

The best way to do this is to stick to your trading strategy. This will stop you making decisions based on greed.

Bad habit #3: Following the herd
Just because you hear of other traders putting on particular trades, don’t tag along. You need to follow your trading strategy and analysis, and decide for yourself what trades to put on.

Bad habit #4: Falling in love with a trade
Don’t get too attached to a trade. Take it for what it is. Just because you want a trade to work out doesn’t mean it will. All traders make losses.

It’s important to cut your losses. And never move your stop loss to increase your potential loss.

Bad habit #5: Not learning from trading
Trading is a continual learning curve. If your losing trades are starting to outweigh your winning ones, it’s time to take some time out of the market and rethink your strategy.

Instead of risking your cash on the market, you can use a demo account to try out any changes you make to your strategy.

So there you have it. Achieve trading success by avoiding these five bad habits.

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