Many traders believe that the cause of their losses is because they do not know how to manage capital. But when embarking on the process of capital management training, we will notice that one thing is, psychology greatly affects the capital management process of traders.

Capital management needs a process for traders to understand how to fully believe in their own capital management. In this process, psychology plays an important role so that traders can maintain their capital management habits and use which mood to perform until they see the results.

With the 1% rule, which is no more than 1% loss on a trading strategy, many traders follow this. But to maintain it is another matter. So that% changed again. It is this frequent change that creates the habit of breaking the rules, and in the end, it is difficult for traders to manage capital effectively.

CAPITAL MANAGEMENT NEEDS TO KNOW HOW TO CONTROL PSYCHOLOGICAL HASTER

What if you were a person in a hurry. Even though you have set a stop loss according to the rules if you are in a hurry in every strategy you follow, will that stop really play its role?


When traders are in a hurry, everything that happens during the trading process is unpredictable. Maybe you cut the order early, or maybe you moved your stop loss, or it gave rise to another sentiment that you didn't notice, ...

Capital management takes patience and discipline. And especially to know how to believe in your own strategy, which is a way to prevent traders from getting stuck in the trading process. ensuring better capital management.


CAPITAL MANAGEMENT NEEDS A STABLE MENTALITY

Psychological stability means there is less emotional fluctuation during trading. If your trading process is full of emotions, let alone capital management, your entire trading process will be in trouble.


However, when talking about capital management, fluctuating psychology will make traders no longer interested in capital management, but they will pay more attention to profits and losses. They can almost always break the rule.


CAPITAL MANAGEMENT NEEDS TO KNOW HOW TO CONTROL FEAR

Fear especially affects the capital management process. Especially when it comes to stopping losses. When you are dealing with principled capital management.


But if the fear of being overwhelmed, it will cause you to break your plan, you can even clear your stop loss. This fear of loss can lead to wrong trading decisions.