If you stick to trading for a while you will find that the most difficult thing about trading is dealing with the emotions that arise in the trader himself. Whether you trade profitable or unprofitable, you must learn to adjust your moods and emotions. During the trading process, you will experience thousands and thousands of situations with all kinds of overlapping emotions and the way in which you handle these will determine your long-term success more than anything.

To manage your emotions, you must first have a strong trading method that can make a profit in the long term if you keep the discipline and trade to your advantage. At the same time, you must also manage your risk closer to keep your emotions steady. Because not all trading will be profitable, discipline and capital management are imperative for traders to do to limit risk.


Here are the thoughts on psychology to know in trading, understanding to know what we need to improve that mentality.

Losses - Better Trading = Despair

Losing is a common thing in trading, but if you don't learn to trade better, your journey will become more and more hopeless in the future. Losing is a part of trading and don't be sad about it. It is like a fee for you to better understand the profession. If trading losses on quality strategies, losses are sometimes good for you.

Expectation - Reality = Disappointment

Participating in trading needs to have realistic expectations. If you have expectations but lack reality, the results will probably disappoint you. In fact, you can expect a 15% -20% annual return after having had real experience in dealing with quality deals. You can expect more than this, but you need to take higher risks and you also have to trade better.


Frustration in losses + lack of discipline = Regret

If you trade according to the trading plan but still lose money, this is normal, but if you trade the wrong plan plus your lack of discipline, it will make you feel very regretful.

Understand your strengths + Years of successful transactions = Trading intelligence

To trade well, you must trade real money. The experience and skills come from real-time trading, and especially when you've been trading successfully for many years.

Trust in backtesting + Years of winning experience = Trust in your system

Most trading in your own personal opinion or intuition can be overcome when you are not in doubt about your method or in other words when you believe in the method, the system, the way. manage your own risk and discipline. By doing this you will overcome many emotional problems that arise when trading face-to-face in the market.