A trading strategy's success is determined by a number of trades. A successful trader must stick to the rules of their strategy and not allow emotions to get in the way.
Fear of taking losses can ultimately lead to even more losses. The typical behaviour of a trader will be to close trades early, either when the trade has temporarily gone into a loss or a small win, and not letting the trade run its full course
A trader under the influence of greed will try to go for more profit and will not close their trade when their strategy dictates that they should.
Ego can affect a trader, causing them to not close trades when their strategy dictates they should or continues to trade on the same analysis after their trade has been stopped out, because they believe they are correct in their original assessment.
Having confidence in your plan will help keep you calm under pressure. Test your strategy with a demo account and accept the risk, because a 100% winning ratio is unrealistic. You must be prepared to accept losses. It is normal to hope that every trade turns out to be favourable. However, inexperienced traders are likely to experience a stronger emotional impact when they take a loss. In contrast, a profitable trader is able to accept losses as part of the trading strategy and move on to the next trade, without allowing greed or fear to affect future decisions.
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Fear of taking losses can ultimately lead to even more losses. The typical behaviour of a trader will be to close trades early, either when the trade has temporarily gone into a loss or a small win, and not letting the trade run its full course
A trader under the influence of greed will try to go for more profit and will not close their trade when their strategy dictates that they should.
Ego can affect a trader, causing them to not close trades when their strategy dictates they should or continues to trade on the same analysis after their trade has been stopped out, because they believe they are correct in their original assessment.
Having confidence in your plan will help keep you calm under pressure. Test your strategy with a demo account and accept the risk, because a 100% winning ratio is unrealistic. You must be prepared to accept losses. It is normal to hope that every trade turns out to be favourable. However, inexperienced traders are likely to experience a stronger emotional impact when they take a loss. In contrast, a profitable trader is able to accept losses as part of the trading strategy and move on to the next trade, without allowing greed or fear to affect future decisions.
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