Avoid emotional trading
Avoid emotional trading Trading psychology describes how a trader handles generating gains and handling losses. It represents their ability to deal with risks and not deviate from their trading plan. The emotional aspects of investing will attempt to dictate your every transaction, and your ability to handle your emotions is part of your trading psychology. It is impossible to eliminate emotions in trading, but this should not be the goal in the first place. Instead, traders should understand how certain biases or emotions can affect their trading and use this information to their advantage. Every trader is different, and there is no simple rulebook that everyone should follow. Identify your personality traits Develop and follow a trading plan Have patience Be adaptive Take a break after a loss Accept your winnings Keep a trading log Identify your personality traits One of the keys to developing successful trading psychology is identifying your personality trait