👈 Introduction:
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It seems that psychology has invaded all areas of life in the modern era. There is pathological psychology, educational psychology, social psychology, military psychology, behavioral psychology, and the list is long. If we focus our attention on the field of trading, we find that psychological variables are strongly present in this field, as most The trades that traders make are essentially based on psychological motives, but the bitter truth is that most traders and experts in the field of trading focus on technical analysis and fundamental analysis, but most of them, if not all of them, ignore an important factor in trading, which is psychological analysis. So what is meant by psychological analysis? Deliberative? What are the types of negative psychological feelings that affect the trader's psychology during trading?
👈 Definition:
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🔴 Trading psychological analysis is a type of analysis through which I seek to analyze the trader's psychology, in order to reveal the feelings that negatively affect the trader's psychology and make him make wrong decisions that may destroy his capital at any moment.
👈 Negative emotions that pose a danger to the trader’s psychology:
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1- Fear: By this we mean exaggerated fear, and it occurs during the decline in the price of a particular currency or when corrections occur. This is a normal thing, but in such cases the novice trader experiences a state of panic and makes the decision to sell at a loss.
2- Greed: By this we mean the psychological state that a trader experiences when the price of a certain currency rises, but he desires to make more profit, and soon the market turns, and the price suddenly drops, so the trader in this case loses the opportunity to profit and may sell at a loss.
3- FOMO: FOMO is an abbreviation for the English phrase: (Fear of missing out), which means the fear of missing out. This state occurs to the trader when there is great momentum to buy a certain currency, so the trader feels a psychological state that tells him that he will miss this opportunity, so he enters with The herd thus buys at the peaks, and this is a big mistake, as the market quickly turns, and the price suddenly drops.
4- Ecstasy: This is a psychological state that a trader feels when he achieves profits in successive deals. He feels a kind of euphoria that resembles the euphoria of a drug, so he continues to enter into other successive deals until he enters with all his capital and thus loses everything.
5- Recklessness: which is entering into deals hastily without study or research. This condition affects people who seek guidance from others, or resort to applying ready-made recommendations without prior study.
6- Frustration: This is a psychological state that a trader experiences when he enters into several losing trades in a row. He feels a state of psychological frustration, which prompts him to make incorrect decisions. This might put him in a state of revenge.
7- Revenge: It is a psychological state that affects people who have a vengeful tendency, even against themselves. In the field of trading, when this type loses in a particular deal, he seeks without analysis or thought to enter into another deal to compensate for the loss and take revenge for his first mistake, so he loses again and again. Third, until he exhausts his entire capital, he has taken revenge on himself and punished himself subconsciously. This type must be trained to benefit from his mistakes by analyzing them and finding out their flaws so that he does not repeat them again.
