Why Psychology Matters
You can have a great strategy and still lose money if you don’t follow it.
Trading psychology refers to the emotions, behaviours and thought processes that influence your decisions.
Common emotions include:
- Fear
- Greed
- Excitement
- Frustration
- Anxiety
- Overconfidence
The Problem
Imagine your strategy says:
“Risk 1%.”
You lose a trade.
You become frustrated.
Your next thought:
“I need to make that back.”
You increase your risk.
Now you’re no longer following your strategy.
The problem isn’t necessarily the strategy.
It’s the execution.
Professional Mindset
Professionals understand that individual trades don’t matter nearly as much as long-term execution.
The goal is:
Execute the process.
Not:
Make money on every trade.
Disclaimer
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
