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Selling to soon is where fear comes in
instead of watching your charts and waiting for the selling to stop.
If you have set a proper stop loss and the trade is still above it let
the trade pan out. These two emotion can ruin a new traders
experience and wipe out their trading account. You need to keep these
two emotions out of your trading as much as possible. Make sure to
have a trading plan that will consistently make you money in the
markets
You need to be careful when you see a large green candle going up fast
so you decide to chase the trade. Chasing a trade or greed will work
against you especially if you buy at the top of the green candle and
the sellers now start to take their profits.
As you see the next candle turn red you sell out of fear this is a trap
most new traders get caught in. if you are basing your trading
decisions on emotions you will quickly wipe out your trading capitol.
Traders who get past trading out of emotions will learn to follow their
trading plan and become profitable. Money management is most important
to new traders especially in the forex markets. There are many candle
spikes in the currency markets and to trade with poor money management
will kill you in the end. You need to wait for the right set up before
you enter your trade. Trends change all the time due to news and the
world markets which goes on everyday.
You need to understand your not missing anything so be patient and wit
for your trade to develop. Do net trade out of boredom this is a
mistake.
Make sure to stick with your trading plan and work on good capitol
management. Your winning trades will increase as long as you keep
emotions out of your trading and have a solid plan to make trades. As
you have profitable trades make sure to evaluate the trade and why it
worked.
Do not let the markets fool you into thinking that this is easy money it
is not. Again that is your emotions taking over and you will lose your
money taking to many risky trades.
Taking risky trades will wipe out all the money you made from using your
trading plan to make good trades. If you are just starting out in the
forex or stock market you should not make allot of trades until you
learn how to read candle stick charts and what news is breaking that
day. Becoming an emotional trader is not going to give you any more
money but just the opposite more loosing out of greed and fear. |
