Becoming a trader means being a player in the world of finance. Everyone thinks of traders as we see them in The Wolf of Wall Street, which traces the life of Jordan Belfort, one of the most famous businessmen in the United States.
Today on the Internet, there are all kinds of online training and solutions for trading. There is a lot of information: you have to sort it out and identify what has value for you. All the content is interesting, but some of it is of no use to you. Others are not relevant to your trading category. We suggest reading Voytegeon Review and seeing what a decent online brokerage has to offer to retail traders like you.
However, beside choosing decent brokerage, it’s critical to control your emotions while trading.
Psychology of the Profitable Trader
If you want to become a money-making trader, regardless of your age or level of education, you need to have a strong mind. Personal discipline is essential. And it goes further: you must also learn to constantly control your emotions for different reasons.
Let’s take the example again:
You invest 1,000 euros, with a leverage of 100. your real position is 100,000 euros.
The position wins by 1%; this earns you 1,000 euros.
If the opposite happens, you lose 1000 euros.
First, when a person sees live quotes, they will tend to never be satisfied. You have just seen fortune fall into your hands; why not wait and take 2%, which would make 2,000? This is perfectly normal. It’s psychological: it’s very hard to resist.
What is FOMO?
Sometimes you look at the stock or crypto market, even without having invested. And you will always be tempted to see that an asset has increased in value. A share that makes 15% in one day, it makes your head spin. And we are witnessing in some cases what is called FOMO: Fear Of Missing Out. If you see shares take off, you’re going to want to follow trends. And every second seeing the numbers go up, you will imagine your fortune if you had entered it.
It goes without saying that doing this kind of trade is sheer madness. You should never take a train on the way, ever. You can win, luckily. But the losses exceed the gains:
You are likely to lose much more than gain often in an upward movement because you will have seen the increase too late.
If you fall into movements while following, it means that you cannot discipline yourself. If you fail to discipline yourself, then you will panic sell in the same way. And you will never make money, but you will pay successful traders.
Worst of all is that you give up on your discipline and your cool, and even though you might be profitable on that one, it’s a mentality that’s always a loser in the long run.
A Trader Must Control Emotions
It is for these reasons that emotions must be controlled. You have to leave your feelings in the locker room when you trade. It’s not your guts that should speak, but your head. Instead of thinking with your heart racing, calm down. Orders should always be automated and settled in advance when you have your head rested and the euphoria is still far away. It’s the best way to separate yourself from your emotions, and not only do you avoid ruin, but you can hope to become rich.