If you want to succeed in crypto currency trading, the first step is to take a good long look in the mirror.
Some of the most common influences affecting the success or failure of traders are psychological. Trading psychology is a way to describe the emotional component of your decision to invest. Realizing that success may take more personal effort than simply researching the currency before you invest, may make the prospect seem a little daunting. But there is a way to wield the psychology in your favor and knowing just how impactful your emotions can be is the first step.
The psychology of trading in practice.
Now that you know, you can use psychology to have a positive impact on your trading choices in practice. Which unhelpful emotions are you likely to experience whilst investing? Fear is probably the most common. Fear can prevent us from taking risks, move us to sell too early or convince us we will fail in the first place. Seeing your investments appear to lose money will not be easy, it could cloud your judgment and make you doubt your overall strategy. Conversely the excitement and joy of a successful currency investment might make you reckless. It could fill you with a false sense of confidence that will lead to impulsive trading. There will always be good times and bad times, you should be prepared to quit when your ahead. Another potentially dangerous emotion is greed. You may think that greed is a necessity for any trader, with glamorous Hollywood movies about greedy market traders informing our collective consciousness. Try to exchange greed for focus, there is no doubt that money is a massive motivation, but an unchecked appetite may lead to a lack of discipline. Focus on the big picture and use money as a motivation as you implement your strategy. Here’s three simple points to remember:
• Do not be motivated by fear
• Do not be overcome by euphoria
• Do not be motivated by greed
Now we have seen a few negative examples of how emotions can affect trading, what are the positives? If you want to succeed at anything you need to have belief. Believe in yourself and your abilities. This may seem cliché or simple but if applied wholeheartedly it will have a powerful effect. Build a passion for what you do and inject it into each day. Organize yourself with an effectively researched and comprehensive game plan and commit to it fully. Having identified a few dangerous emotions, the next step is to get control of your thinking process. This takes positive action and energy. Positive self-talk is key, for starters tell yourself that you can master the psychology of currency trading. Build on your own personal values and integrity, commit to these as your foundation, a springboard to launch you forward every day. Take breaks and lead a healthy life, feed your brain with healthy food and inspirational material. Strengthen your body with exercise and spend time with your family and friends. It is often underestimated how essential these basic practices are, they will keep your mind agile and focused. Here’s four simple points to remember:
• Do wholeheartedly believe in yourself
• Do positively organize your thinking process
• Do keep a healthy lifestyle routine
• Do commit fully with personal integrity
Finally, be prepared for losses, inevitably not all investments will pan out for the best and this may be especially true for crypto currency investment. When that happens you may feel overwhelmed, but if you have put into practice these tips you will be able to ride that disappointment out with ease. Every failure is an opportunity to learn and exercise our mind, to strengthen it and continue towards success. Trading psychology is incredibly relevant to reaching that success.
“Financial peace isn’t the acquisition of stuff. It’s learning to live on less than you make, so you can give money back and have money to invest. You can’t win until you do this.”