Have you ever wondered why every time you buy the market goes down and every time you sell the market goes up ?
It is the market psychology.
The market will always play with your emotions. It will make you want to buy more before a huge sell off. It will make you want to sell everything before a big pump. This is why its important to remain calm and level headed every single day.
Emotions are really hard to control and this is what makes trading extremely difficult. We make bad decisions when we are excited. We make bad decisions when we are scared.
How do you avoid feeling this way?
One effective way is risk management. Do not overexpose yourself. Risk what you can lose without worrying while having profits targets you can be contented with. The amount will always vary depending on your status. So it is important to be aware of your financial capabilities and to manage your finances responsibly.
Do not give in to your emotions.
When you are extremely fearful. It is probably the best time to buy.When you are extremely greedy. It is probably the best time to sell.
Do this and you will see more results.
Stop trading with feelings. You will lose every time. You literally have a better chance of winning if you do the opposite of what you feel.
Trading is not hard when emotions arent involved.
It’s only hard because we get emotional when risking our hard earned money. Size your positions better. Have less expectations.
Have conservative price targets.
Do this consistently and you will have better days ahead.
