Welcome to Day 7 of the 10 days of trading course from BlackBull Markets. Today we will be discussing ‘trading psychology’.
Getting started in forex trading can be quite intimidating. One of the biggest mistakes a new trader can make is by focusing too much on the numbers and as a result, neglecting the importance of trading psychology.
What is trading psychology?
The two main emotions that govern trading are fear and greed. Fear causes a trader to exit a market too early or enter too late, while greed can cause high-risk trades.
Placing trades should be a calculated, methodical process. Therefore, your mental state should reflect this, and you should be calm, decisive, and committed to your decision.
Follow these 6 steps every time you trade to effectively execute trades methodically :