3 ways Market is Controlled by Emotions
How is market controled by emotions? Trading by emotions
Just as Humans, the market also has emotions. Weather it is fear, excitement or greed.
#1. Fear
Fear or Nervousness is biggest fear. If Trading is done with fear of losing or making voilent mokes that you have no idea results in loss which is more greater than a normal trade without fear.
If you feel fear in market, that market is not for you.
#2. Excitement
If we see excitement is a good sign of Trader, when you enter a Trade being excited is good. It is a very good sign yoy are in the right Market and should Trade more. Being excited at any point in life always works for us.
Excitement helps a lot as when we loose our confidence lowers but if we have Excitement that will turn that loss into profits when we enter the new Trade.So, never be dull. Just take 3 Long deep Breathes and enter into Trade by your Ananlysis.
#3. Greed or Overconfidence
Greed/Overconfidence
This is one of most important emotions seen in a Trader. If you had traded then you will feel what i want to say. When you win, then you except more and become greedy. This changes your Character, you are no longer the same person who was Trading half a hour ago. But when we loose, we become more careful more alert that what is happening.
Always keep in mind the limit that you have planned for the Trade, also Risk management is very important as it keeps us in right riht without any losses.
Author: Vasu Awasthi
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