Psychology on trading?

<p id="isPasted">Learning how to trade professionally takes years. Beginners first learn how to use trading platforms, terminology, technical and fundamental analysis, risk management, and probabilities. The next step is developing a trading strategy that fits a trader. You see, there are various strategies and techniques that you can use to make money in the market. However, what is effective for one trader, might not work for another. For instance, a trader who can make up his/her mind fast has fast fingers, and loves active trading will find intraday, high frequency, or news trading interesting. For traders who like to thoroughly plan their trades, swing and position trading will be more appealing. &nbsp; After a trader finds his/her strategy and trading style, the next challenge is learning how to manage emotions. Various psychological stimuli affect the traders’ decisions. They are very subjective, and individual traders experience different responses. However, trading psychologists still outline some of the more universal stimuli that tend to emerge all across the board. More specifically, we will review four of those stimuli: &nbsp;</p><ul><li><p><strong>Fear</strong> – Fear usually occurs after losing trades. Traders lose confidence in their trading system and are unable to place orders, even when great trading opportunities present themselves. Every trading strategy experiences drawdown periods, it's important to study whether the drawdown is temporary or the market conditions have changed, and the strategy has become useless. To overcome fear after a series of losing trades, professional traders decrease their position sizes or demo trade. Which helps them regain confidence in their system and, simultaneously, limit the drawdown amount.&nbsp;</p></li><li><p><strong>Anger </strong>– Anger takes place after experiencing loss. Most inexperienced traders lose money because they are unable to take small losses. Losing is a part of the process. After losses, traders try to get back the lost amount quickly and open new positions without proper planning. "I'll close the position when I'm even" - you'll often hear such words from revenge traders. Revenge trading rarely ends well. Yes, you might win back the amount you've lost due to luck, but now you have learned a very bad lesson and will try the same thing again in the future. Losing money and learning what not to do is better than making money and getting a bad lesson.&nbsp;</p></li><li><p><strong>Impatience </strong>– Position trading requires waiting for trading opportunities to come, planning, and trading the plan. You can't force markets to give you trading opportunities. On many occasions, there are days without the appearance of reasonable setups. When not in active positions, most traders think that they are wasting time. They feel bored and unproductive, which makes them open poorly planned orders and overtrade. Overtrading leads to destroying trading balance.&nbsp;</p></li><li><p><strong>Greed </strong>– Greed also leads to overtrading. As already mentioned, we all start trading because we want to make a lot of money. However, making money should be the least on your priorities list when trading. The number one priority is not losing money, the second one is trading the right way and the third one is making money. Greedy traders focus on money and ignore the other two. Greed makes traders overtrade or trade using large trading positions. It's obvious why overtrading is bad, it leads to trading poor setups. Trading using increased sizes is an equally bad idea. Consistently successful trading is dependent on probabilities. When trades become oversized, everything starts depending on single trades. Even when the setup has a high success rate, there's always a chance of the price going in the opposite direction.</p></li></ul>