Some types of emotions can affect the clarity of your thinking and thus affect any trading decisions you make.
Losing a deal can make you angry - often yourself, to make a bad decision.
But we all make mistakes - this is an important way of learning. If this happens to you, as inevitable one day, try to remember what to do next time in a different way.
One common motive in moments of anger is to try to "return to the market" by entering into another deal. This type of unwanted reaction - or "activating the hair trade" - is always a bad idea. In addition, you can start buying anything and everything randomly. This is known as the "Venice trade".
Take some time to relax and take a deep breath, then consider objectively whether the transaction you suggested is really logical and matches your overall trading strategy.
Another common nuisance is a missed opportunity - something that is easy to do in the rapidly changing world of financial markets.
When this happens, it's easy to put yourself in trouble by repeating things like "I should have bought it there" or "I knew this would happen." But this kind of mentality can direct you to traps that can undo all your hard drunk work.
For example, you may be tempted to complete a subsequent transaction, or you risk risking several transactions in a sequence known as an excess transaction to correct the situation. You can even "go ahead," a certain state of mind that means you are making irrational decisions, not those based on the advantage of what is right in front of you.
For this reason, if the moment passes, you will need some tricks to remain visible until the next signal.
Fortunately, these simple tricks, such as a break, look at the original trading plan and practice positive thinking - remember to skip a step - this is not the end of the world.
Suppose you trade gold several times and each time you get a good profit. It may be tempting to start believing (perhaps in an unconscious state) that "gold is your friend" and that it will reward you every time.
Once this belief grows, there is a risk that you will open more positions on gold without proper monitoring of the current situation.
Unfortunately, the fact that a particular instrument has been profitable in the past is not a guarantee that it will continue to provide it to you. Similarly, if you have a bad experience with the original, there is no reason to avoid any future opportunities.
In our lives, there are times when events that do not depend on us affect our ability to think clearly.
It could be divorce, family illness, bereavement, just moving home or changing job. All these things will distract you from trading and may interfere with your judgment.
The world of financial trading can be hectic, requiring your full attention. Therefore, when you have stressful periods, it is often best to stop trading so that you can allocate time and energy for this purpose again.
Do not overcome bad decisions or missed opportunities. Learn from your mistakes and look forward to them next time.
To avoid any inconvenience when something goes wrong, take a break, remind yourself of your trading plan, and wait until you return to a positive state of mind.
Remember that feelings and superstitions have no place to trade. No market is your friend or your enemy, and every opportunity must be judged based on their advantages.
When you experience stress in other areas of your life, it may be wise to suspend your trading.
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