Fear And Greed In Trading
Markets are not mechanical or linear but moves in a reaction to human emotions. Many have talked about the drawbacks of emotions in trading, psychology of. .. In this article we would like to discuss these two emotions:fear and greed.
“Humans bring their luggage to the market”
I remember reading this phrase in a book on trading psychology . With luggage refers to human emotions, which are inherent in and inevitably show market movements . Each day the fear and greed take action. You can not forget that the market is made up of a set of people with feelings just like you and me.
The ups and downs of the market are the reflections of those emotions ; nothing more.
That’s something important to remember when you are in the market. Every move is like a mirror of the people who are in the market at the right time. Remember that discretionary trading systems more often linked with emotions.
And with a clear head, we will take better trading decisions.
We are traders, and we have to be careful with our minds. Our minds are tools that generate profits . Without that, all we have is our body.
No quiet, it’s hard to be a good trader and the market sooner or later we will swallow. According to a theory of psychology in trading when the market is rising, greed is winning over fear and when fear is winning, the market will fall . When we are able to control emotions , we have an advantage and that advantage rise our chance to win.
There are opportunities all the times, but without a clear mind, it is difficult to capitalize on the opportunity at that time . Each person has fear and greed , but a trader who can control that and triumph over their emotions, will be successful.
With his emotions , you have the first advantage to win in the market and start or enhance your success with binary options.
It seems that emotion control is simple, but is the most difficult obstacle. Fear and greed are powerful.
“Take control of your emotions and you win, lose control and lose it.”
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