Trading psychology influences you to get more profit in trading. We will inform you to know more about the psychology of trading.
The pandemic is increasingly widespread, with even higher cases of positive victims exposed to COVID19, making a lot of people anxious and full of fear. Even the results of a survey from the Association of Indonesian Mental Medicine Specialists (PDSKJI) stated that out of 1,522 respondents, 64.3 percent of the community experienced anxiety and depression due to the COVID-19 pandemic.
The symptoms of mental health disorders that they feel are not always the same, but depression is a major mental health disorder. Meanwhile, research conducted by Jill Newby from the University of New South Wales at the Black Dog Institute, Sydney, Australia, stated that 24.1 percent of people surveyed feel high levels of depression, anxiety, and stress.
From the results of these studies and surveys, it can be concluded that not only physical health must be considered during this pandemic, but also mental health. It is important for you to keep managing your emotions, controlling yourself and thinking positively to avoid mental disorders.
Including when you do trading, there is a lot of knowledge provided by experts in terms of getting profit while trading, but not many say that one of the tips is to conquer emotions while trading. Because don’t let your emotions affect you when making decisions. Uncontrolled emotions are a trader’s main enemy. Also don’t be very optimistic at the beginning and pessimistic in the middle of your trading journey.
Trading psychology, how to think like a trader
If you have too much confidence, or feel fear when trading, such as fear of losing, fear of being wrong, afraid of missing out, and even psychologically depressed so you become uneasy, don’t mourn.
Shania, a consultant from Indodax, said that’s very important to manage trading psychology. “The psychology of trading is the feeling that is felt when trading, for example, it is really sad if we are loss or really happy if we are profitable,” she said.
Shania said that feelings like these greatly influence her future steps when trading. For example, you have just loss experience, making you afraid to start trading again. Or, after you profit a lot, you can over trade for the next transaction.
“Now this feeling must be reduced, to minimize errors in trading. Manage your emotions,” said Shania.
There’s a many ways to know the information of psychology trading, such as finding many sources of information, through browsing, viewing YouTube or reading related books. Even if you have a trading mentor, you can also consult this with your mentor.
Then, what if you have already loss and trauma to start trading again? You can fix your trading system, evaluate new opportunities when trading and set the mood back to make it calmer so you have the motivation back to continue trading. Indeed, nothing is perfect in regulating emotions, because successful traders also need time to learn about how to control their emotions when trading.
Shania said to know or feel the psychology of trading, you can try trading starting with a small amount first. So you can find out what time of profit or loss it feels like.
“Do not spending big, because if you are loss, the shock is quite severe and big, it can even take a long time to return to trading,” said Shania.
Now, if you want to try trading with a small nominal, you can start trading on Indodax, because you can trade with a nominal starting from IDR 10,000.
It is very important to understand that anything can happen to every trading position that’s taken. However, don’t make that the reason you stop trading. So, manage your emotions and calm your mind while trading. Good luck!