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Fear

Keep a close eye on this breakout!Traders, Keep a close eye on this breakout on our fear index. So far, nothing significant has followed to the same level of price movement: the dollar is still under its macro-uptrend resistance, the US500 is still using its macro-uptrend for support logarithmically, and the US10yr/US2yr remains under resistance. But we want to track this closely to find out the legitimacy of this spike in fear. Confirmation can be had if one of the indicators mentioned above follows and breaks its support/resistance (see yesterday's video for more). Best, Stew
TVC:VIX
by stewdamus
Humans are not perfect- Very Basically SOPR (Spent Output Profit Ratio) measures the price bought versus price sold. ( but it's more complex than that ) - Negative SOPR typically means people are selling for a loss. ( red dotted Lines columns ) - Positive SOPR typically means people are selling for a win. ( Blue dotted Lines colums ) - So what we can notice and deduct from this graph ? - Simply that we are not perfect. - The Fear and The Greed. - We scare when the price goes up too much. - We fear when the price goes down too much. - Most of the time we sell to early. - Most of the time we sell when it's time to buy. "Human being is the fact to be imperfect anyway" Happy Tr4Ding !
COINBASE:BTCUSD
by thecryer
15
The 4 fears of every traderTrading in the financial markets, whether it be forex or cryptocurrency, can be a thrilling yet challenging experience. It requires a level of strategy, discipline, and risk tolerance to make informed decisions and reap profits. But, as traders, we are often faced with fears that can cloud our judgment and hinder our success in the market. To help you overcome these fears, we will delve into the four main categories that traders face: fear of being wrong, fear of losing money, fear of leaving money on the table, and fear of missing out. These fears can be crippling, but with the right understanding and approach, they can be conquered. Join us on a journey to understand these fears and how to overcome them, so you can become a confident, successful trader in the forex and cryptocurrency markets. Fear of being wrong The fear of being wrong is the most common obstacle for traders. It's only natural to want to be right all the time, but in the fast-paced and ever-changing world of trading, being wrong is an inevitable part of the process. But this fear can hold us back from making the bold and calculated decisions necessary for success. When we're too afraid of being wrong, we may avoid taking calculated risks, miss out on potential profits, or even make impulsive decisions based on emotions instead of data. But here's the thing: being wrong is a valuable opportunity to learn and grow as a trader. Every misstep is a chance to analyze what went wrong and improve our strategy for the next trade. So instead of letting the fear of being wrong hold you back, embrace it. Embrace the possibility of being wrong and use it as fuel to become a better trader. Remember, even the most successful traders make mistakes and face losses all the time. The key is to learn from those mistakes and come back stronger. Fear of losing money No one wants to watch their hard-earned capital disappear, but in the world of trading, losses are a fact of life. However, letting this fear control our decisions can be just as detrimental to our success as the fear of being wrong. If we're too afraid to lose money, we may be hesitant to take calculated risks, miss out on potential profits, or even exit positions prematurely. But here's the truth: losses are an integral part of the trading process and can be managed with a solid trading plan in place. By implementing risk management techniques, such as stop-loss orders, traders can minimize their losses and protect their capital. So instead of letting the fear of losing money paralyze you, turn it into a strength. Use it as motivation to develop a comprehensive trading plan that incorporates effective risk management strategies. Accept that losses are a natural part of trading, and use them as an opportunity to improve your strategies and refine your approach. Don't be afraid to lose money, be afraid of not taking advantage of opportunities to grow your wealth. Fear of leaving money on the table The fear of leaving money on the table is a tricky one, as it often arises when we're in a winning trade. It's tempting to hold on, hoping to squeeze out even more profits. But this can be a dangerous mindset that can lead to ignoring stop-losses and exposing ourselves to unnecessary risk. After all, you don't have a crystal ball ( and aren't an FOMC member ), so you should expect to buy the exact bottom and sell the exact top. Instead, you need to have a clear exit strategy in place and stick to it, no matter how much you feel like the trade can continue to go in your favor. By having a predetermined exit plan, we can lock in profits, manage risk, and avoid emotional decision-making. So, instead of succumbing to the fear of leaving money on the table, embrace discipline. Develop a solid exit strategy that balances the desire for profits with the need for risk management. Don't be afraid to lock in your profits, even if it feels like there's still money to be made. Trust in your strategy and stick to your plan, and you'll be in a better position to capitalize on future opportunities. Fear of missing out The fear of missing out (FOMO) is a feeling that all traders have faced at some point. It's especially prevalent in a volatile market, where prices are moving quickly, and it can be tempting to jump in without fully analyzing the situation. But succumbing to FOMO can lead to hasty decisions based on emotions, rather than logic, which can result in costly mistakes ( emotions causing mistakes...do you see a pattern? ). It's important to resist the temptation of FOMO and stick to your trading plan, even when the market is moving rapidly. By having a clear strategy in place and following it, we can avoid impulsive trades and make informed decisions that are grounded in logic and analysis. Take the time to thoroughly analyze each opportunity before making a decision. Trust in your strategy and stick to your plan, even when it feels like the market is passing you by. How to overcome our fears? For a brighter reader, it is easy to notice that these fears are omnipresent. No matter what you do or don't do during your trading day, you can't avoid these fears. Overcoming them is not easy, but it is essential for achieving success in the market. Here are a few pointers that can help you overcome these four fears and become more disciplined and consistent traders: Develop a reliable trading plan Having a well-defined trading plan can help us to manage our risks and make informed, rational decisions. A good trading plan should include our goals, risk management rules, and entry and exit strategies. By following our plan, we can stay disciplined and avoid making emotional decisions based on fear. Practice proper risk management Risk management is an essential part of trading, and it can help us to overcome our fear of losing money. By setting clear stop-loss levels and position sizes, we can minimize our losses and protect our capital. This can give us the confidence to take on appropriate levels of risk and pursue potential trading opportunities. Realize that your ego is the enemy How many times have you held a losing position past your stop loss and literally prayed for the break-even? Did anything fundamentally change about your position? No, you just didn't want to take the loss, am I right? See, even though we know that losses are part of the process it is still very hard for us to accept that any trade can go against us. And sometimes you do everything right, and still lose. Every trading system works with probabilities. Losses are normal. Let your ego go and stop trying to force a win out of every single position you take. ( Add this to your daily affirmation ritual if you must ) Stay focused on the long term It's easy to get caught up in the short-term movements of the market, but it's important to remember that trading is a long-term game. By focusing on our long-term goals it becomes easier to stay disciplined. Every losing day can get you closer to your long-term goal, as long as you sit down, analyze what happened, and learn from it. Take regular breaks Trading can be mentally and emotionally exhausting, and it's important to take regular breaks to recharge and refocus. By stepping away from the markets for a while, you can clear your mind and come back to our trading with a fresh perspective. This can help you avoid making rash decisions. Learn from your mistakes This is the big one. Realize that nobody is perfect, and everyone makes mistakes in their trading careers. It's important to learn from these mistakes and use them as opportunities for growth and improvement. By analyzing your past mistakes and adjusting your strategies accordingly, you can become better trader and overcome your fears. Consider automating your trading process Our trading platform does a fantastic job of keeping your emotions out of trading. You can set multiple take profits and stop losses, understand your risk-to-reward ratio, the trade's impact on your portfolio and much more before you even place the trade. You can backtest your strategies, trade them live automatically, and much much more. Leveraging technology in your favor can yield a tremendous difference in your trading results, as it did for our 15 thousand users. Conclusion The four main fears that traders face - fear of being wrong, fear of losing money, fear of leaving money on the table, and fear of missing out - can have a significant impact on our success in the markets. However, with the right approach and mindset, these fears can be overcome and transformed into positive drivers for our trading. By accepting that being wrong is a natural part of the trading process, managing our risks, having a clear exit strategy, and resisting the temptation of FOMO, we can overcome these fears and become more confident and successful traders. By doing so, we can capitalize on opportunities, make informed decisions, and achieve our trading goals. So embrace these fears, overcome them, and take control of your trading journey.
PEPPERSTONE:GER40Education
by CleoFinance
36
😱 Fear Of Missing Out (FOMO)📉Fear Of Missing Out (FOMO) / SHORT scenario. Fear of missing out, or FOMO, is the feeling of anxiety or regret that can occur when someone believes that they have missed an opportunity to invest in a stock or crypto currency that is increasing or decreasing in value. This feeling can be triggered by seeing others making money from a particular investment, or by observing the stock or crypto's value increasing or decreasing over time and thinking that one should have invested earlier. FOMO can be dangerous to investors because it can lead to impulsive buying or selling decisions that are not based on sound investment strategies. In the above scenario we can see the effect of FOMO in play. The price action breakdown of the trendline, indicating weak support and a flip of the trend. This psychological effect can be observed without the use of indicators and by just looking at the price action. A deeper look into order flow and Open Interest could further explain the trader's behavior on this particular effect that occurs. 🔴 ENTRY is based on the first major red candle after the breakdown, trying to knife-catch the price, based on no strategy and purely emotion of missing out a potential short position with a stop loss nowhere close to a potential supply zone where the price action could re-visit for confirmation of a downtrend. 🟢 ENTRY is based AFTER the retest of the trendline, on a potential supply zone where the price action is looking for a retest at this level before confirmation of further decline of price action. Stop loss is given above the last high, above the trendline. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work , Please like, comment and follow ❤️
Education
by QuantVue
2
Trading with 0 stress👉So you see a trading opportunity. It looks like a fair setup. You get confirmation to enter, but you hesitate. You're afraid of losing money, or you have some anxiety that keeps you from pulling the trigger. This is a problem that almost all traders face at some point in their trading career. I too have suffered from fear of losing money and this problem has led to other mistakes that have stopped me from executing my best trades. Today I share my process of what I did. To reduce my anxiety while trading and the actual steps I took to improve my trading execution. ❓ Do you think the color of the candle affects you while trading? Of course it does. Feel free to tell me if this sounds familiar in the comment section. You enter a long trade expecting the market to go up. You gain a few %, then the price turns against you and forms a red candle. And you start watching the movement, especially each candle pointing down. And you focus on the red color of the candle. 😱You get more and more anxious. When another red candle forms. This was a big problem for me in my early years. I closed my trades after a few minutes. When I saw more red candles below my entry point. The solution to overcome this is simple: 🧨 Change the color of the candles to one color. This way you will only track the price and its range. Let me ask you, which of the texts on the screen is the one that is easier to read? The single colour or the multi-colour? There is a phenomenon in psychology called visual perception. Your brain is always looking for patterns in commerce. If you use multi-coloured candles, you reduce your ability to recognise patterns. Let me repeat that. Your brain is looking for patterns, and one of those patterns is similar colors. Colors affect your brain, your emotions, your feelings. Your psychology, potentially your trading ability. To trade best, you need to trade in a neutral, unbiased state of mind. I've bought in the past because of fast moving red or green candles, I've made bad trades, both on entry and exit. If you get anxious during an open trade, use candles of the same color. So try this simple tip to reduce your reaction to price movements. Change the colour to anything but not to red. Blue or green, yellow or white candles. Just stay away from red and give me a feedback in a week or so. I find myself calmer using a single color for the up and down candles. Maybe this little brainstorming session will help relieve some of the anxiety. 👉 Here's another situation. You see a long opportunity. The price is around the key level and you need to decide. You pull the trigger at, say, $50. You say to yourself, "Wait, I'll wait until... until the market drops a few cents. The market drops to $50.02, but you're still waiting. And then the market goes back up to $50.10 and... you say to yourself, I'm not getting in now. That's a worse price than five minutes ago. I'll wait until it goes down again. And of course the price never comes back. It goes up without you. And now you're frustrated because you anticipated the move, but your perfectionism... prevented you from pulling the trigger. Fear of losing money and perfectionism can lead to irrational behavior, overanalyzing, overthinking and slowly draining your mental energy. 🟢 One of the problems I personally struggled with was. That I wanted to be perfect in my trades. I was looking for the perfect opportunity. You know, when you enter and the price never goes against you, not even one %. Being a perfectionist in trading is stressful and always being on the edge doesn't help you make good trading decisions. In most cases, when you are waiting for the perfect entry, you realize you just missed a big move. Trying to time your entry precisely, at the entry point, is a foolish undertaking. Perfection can be your biggest enemy in trading and can cause you a lot of stress. 🟢 Here's how to reduce that anxiety. Use ranges instead of exact prices. As a day trader, you will not be able to track price movements every minute of the day. That's why you should use price ranges instead of exact prices. This gives you some flexibility. And of course you still need to be strict with yourself when executing your plan. Good traders are vigilant, yet patient. When a lineup they've been waiting for pops up, they grab it without hesitation. But until that time comes, they won't budge. The price fluctuations that lure other traders. They choose to reserve energy for what they are prepared for and ignore everything else. They don't chase the market, they let the market come to them. The opposite of this is forcing trades. You know the feeling when you wait for a trade, see some activity, and pull the trigger early. You force the trade. I did that almost every day. 🟢 Here's the solution. Stop using market orders and use limit orders instead. Basically let the market come to you. Once you have selected the assets you want and done your analysis, you need to determine the prices where you will buy and sell. Your goal is simply to buy and sell at the best possible prices, and use your research to identify reasonable prices in advance. Not only will this help you get a better deal, it will also help you avoid emotion-based trading. The simple solution to reducing stress and anxiety is to only act when the conditions are what you expect. Letting the market come to you is a difficult but valuable skill to learn. So forget market orders and use limit orders. This will reduce your emotional involvement and prevent you from making bad decisions. 🟢 If you want to reduce stress and anxiety while trading, you should switch to higher time frames. This will allow you the time needed to make informed decisions. I know you will find it difficult at first, but you will continue to struggle with anxiety and stress until you make the change. If you are feeling nervous and afraid of losing money, I highly recommend trying the higher time frames. Again, this transition to higher time frames is difficult and most traders are reluctant to switch. But you need to change your environment if you want better trading performance. If you trade in an environment like the 1-minute or the 5-minute chart, you risk the risk of market noise. True, higher time frames don't offer trading opportunities with as much speed, but the signals generated are more reliable and have a much higher chance of working. Better to trade a handful of good quality trades. Rather than trying with many poor quality trades. Daytrade trading is exciting, but it also requires you to monitor price movements for many hours. Most daytrade traders initially like the excitement and moving on lower time frames, but it's only a matter of time before they experience mental burnout, and once mental discipline is exhausted, greed, frustration, anger and impatience will bring bad trades and send you into a dangerous state of mind from which it is difficult to recover. So move into higher time frames. You'll only spend a fraction of the time in front of the charts, and you'll be at less risk of burnout. After a while, you'll find that it becomes much easier to work with a cool head while maintaining mental and emotional discipline. 🟢 How often do you enter trading? The setup looked great, then the price went straight away to your stop-loss before it got to your take profit level without you. Without profit, this is probably the most frustrating scenario many traders face on a daily basis. Because you fear losing money, you tend to use small stop losses. You don't want to make a mistake and try to keep your losses small, but keeping your levels too close to the entry candle is a recipe for having your account cut to pieces. A tight stop relies on you having very precise, near-perfect entries, and we've already talked about perfectionism in trading. If you repeatedly see your stops being hit regularly before the price turns in the original direction, it is very likely that you have placed your stops at levels that other traders use, especially if you trade on obvious price movement patterns. My advice is to start trading with a wider stop loss and a lower position size away from the entry. The position size you use should be small enough that neither a loss nor a gain will affect your mindset and ability to continue trading, only then will you really focus on proper execution. 🟢If you are trading the markets with your hard-earned money, but you don't know what your trading strategy is and you don't trust your market analysis skills. You probably shouldn't be trading with a live account. One of the biggest reasons why you are nervous and afraid when you trade is that you will lose your money because you don't trust your own trading skills. You may not have learned a trading strategy. You do not have a trading plan, you do not keep a trading diary. You are simply not prepared to take risks. Real money at risk in the markets. That is why you feel fear when you trade. Basically, trading anxiety comes from not knowing what you are doing. I have talked many times about the value of a trading log. The key is to use your trading log to keep track of when you are at your best and when you are at your worst when it comes to your trading and your emotions. I pay close attention in my trading diary to times when I make mental mistakes, such as not trading a good trade when I know I should. When I am afraid of losing money or avoiding a good trade, I look for triggers and patterns. Was I confused? Did I make that mistake in a particular market situation? Do I have certain feelings and emotions from previous trades? These are the intangible factors that you need to track in your trading log. 🟢 Most traders are fixated on short-term results. They make money by pressing a few buttons and don't pay attention to the process that makes it possible. They make mistakes, learn from them, and correct them over and over again. Everyone thinks about winning, but few think about the benefits of losing . In my experience, most wins are directly attributable to a big losing trade that I learned from making money in the past. As a trader it makes no sense if you don't understand why/why you can't repeat. Similarly, losing money is a valuable experience. If you understand why you lost. Paradoxically, you cannot understand why you win. Without first understanding how you could have lost in the same situation. So change the way you think about losses, because they will show you the direction of repeatable victories in the future. If you've already lost, at least don't lose the lesson. Take care my friend and have a good trade!
MEducation
by CryptofolioHungary
HOW TO MANAGE YOUR EMOTIONSHello everyone! One of the most important , and in the same time, one of the hardest aspects of trading is the ability to manage correctly your emotions and leave them aside while trading. So how can we manage our emotions in stressful situations? Here are some tips that every trader should consider when starting trading: 1. DO NOT ACT ON ANGER: every time you feel strong emotions, hold back and revisit your trading plan, is your move aligned with your initial plan or are you acting on irrational emotions? One of the worst things is to take a position based on anger after a loss in order to recover the losses. Take a deep breath and rethink your decision! 2. DO NOT FALL IN LOVE WITH YOUR POSITIONS: we all want to always be right, but sometimes we have to accept a bad position and close it. It is common to fall in love with our positions and hold it out of hope that the market will switch, but involving emotions just blow the account, stick to your plan! 3. ESTABLISH SOME TRADING RULES AND KEEP A TRADING JOURNAL: setting your own rules of trading and risk management is crucial for a profitable account. No matter what you hear from others and how good a position may look, if it is not aligned with your rules, do not take it! Moreover, do not change a strategy after some losses, stick to what you have learnt and planned, keep the information in a trading journal and plan your next moves based on you learnt from it. 4. TAKE A BREAK AFTER 3 LOSSES IN A ROW: it is natural to have a bad day, but when this happen do not become over emotional and over trade, but rather take a break and wait for a new and fresh trading day. Strong emotions will ruin any important decision, no matter the context, so try to avoid them. 5. SET TP AND SL AND TRUST YOUR JUDGEMENT: after establishing your trading plan and risk management plan, in order to stick to your risk to reward strategy, you have to use Take Profit and Stop Loss orders, and trust your judgment and the market. No matter what happens, this helps you have a clear forecast of your account, without blowing it. Also, avoid getting greedy and secure your profits with take profit order. 6. LOWER THE TRADE SIZE: if you feel overwhelmed by the risk on each trade, and out of fear you make irrational decisions, try to lower the trade size to what feels comfortable with you. After doing this, always update your trading strategy! 7. DO NOT GIVE UP! : there is a point when every trader feels like giving up, losing all his faith, but you should understand that this is the normal journey, with ups and downs, and if you do not let yourself intimidated by the downs, the ups are limitless!
OANDA:XAUUSDEducation
by m_maia14
2
GREED and FEAR in BTCFEAR and GREED are familiar feelings to everyone. Non-professional traders trade according to these emotions. As you know, emotions only get in the way, but we can use other people's mistakes for our own purposes. Chart To analyze emotions, let's take the indicator of FEAR and GREED . From December 2019 to February 2020, the indicator was in the zone of EXTREME FEAR. It was a time when BITCOIN, after a lot of growth, fell for a long time and people stopped believing in the good and began to be afraid. It was in this zone that smart money began to accumulate its positions and soon the price went up strongly. As the price moves up, people have started to believe in BITCOIN again. Just at this time, the indicator entered the zone of EXTREME GREED. Everyone started buying BITCOIN regardless of the price. People just thought that BITCOIN would grow indefinitely - greed was growing. By the end of this zone, the price, though not immediately, began to fall. Many were closed by margin call. People began to be afraid again. The fear was growing. The indicator entered the zone of EXTREME FEAR, after which growth began. I think you have understood the logic and noticed a pattern. As you know, when fear prevails in the market, you need to buy. When greed prevails in the market, you need to sell. This is an old rule of professionals. Professionals not only don't make their own mistakes, but also use other people's mistakes to make money. There are no emotions here, there is only calculation. Learn to control your emotions, otherwise they will control you and you will become a victim. And how do you deal with emotions and do you use the FEAR and GREED index?
Long
by UnknownUnicorn15614419
14
Trading Psychology: 4 Dangerous Emotions Traders Must AvoidWhen I was a naive, newbie trader, I didn’t pay much attention to my trading psychology. I was more focused on the technical chart patterns and trade setups. However, I soon found out the hard way that… Ignoring the psychology of trading was destroying my trading results. That’s when I began making a serious effort to master my personal trading psychology. I started reading trading psychology books, and even worked with a personal trading coach. I was definitely on the right path to mastering trading psychology, but wished I would have started learning sooner. That’s why NOW is the perfect time to start getting your trading psychology edge. But why is it important to understand stock market psychology? Understanding stock market psychology paves the way for your long-term trading success. That’s why this exclusive new mini-lesson of top trading psychology tips is just for you. How do you develop trading psychology? Some trading sites advise new stock and crypto traders to gain experience by paper trading with a simulated account. This can be helpful to learn the basics of trading, but it’s a much different ball game when real money is on the line. Your true emotions in trading will only be revealed when risking your own money with actual trades. Therefore, the best way to develop your trading psychology is simply by working your way through hundreds of live trades with real capital. Keep a basic journal and note when you feel the dangerous emotions below start creeping in. This is the only way to truly identify your personal strengths and weaknesses in trading psychology. 4 Most Dangerous Emotions to Avoid: Fear, Greed, Hope, and Regret Investing decisions in any market in the world are driven by 4 powerful emotions of Fear, Greed, Hope, and Regret. Left uncontrolled, these emotions can have a seriously negative impact on your trading account—but only if you let them. Your personal ability to master these key emotions directly determines your long-term trading success. So here’s a quick rundown of how fear, greed, hope, and regret can harm your trading results. Most importantly, I have also included actionable ways to avoid these emotions in your trading. FEAR – The most powerful human emotion that affects your trading Fear is a distressing emotion caused by a feeling of impending danger. This results in a survival response, regardless of whether the threat is real or imagined. Traders consistently report fear as the emotion they struggle with the most. Fear has even caused people to jump off buildings during market panics. FEAR is the reason markets typically fall much faster than they rise. It took the Dow Jones Industrial Average 24 years (1983 until 2007) to rally from 1,000 to 14,200…BUT it only took 2 years (2007-2009) to lose HALF of that multi-decade gain. Why? Uncontrolled fear rapidly leads to panic—which leads to poor decision making in the markets. When traders become driven by panic, they often sell their positions at any price. That’s why stocks frequently cliff dive when group fear starts kicking in. Fear can also rear its ugly head after you experience a string of losing trades. After suffering many losses, fear of “yet another loss” can make it mentally challenging to enter new swing trade setups. When paralyzed by fear, you miss out on profitable trading opportunities. If it’s a quality trade setup, then don’t let fear prevent you from buying (be careful not to confuse this with revenge trading). Remember that each trade you enter is completely independent of the previous trade. Therefore, losing money on a prior trade does not necessarily mean you will lose on the next trade. Fear is not always bad, as it can help keep losses small. For example, fear of a bigger loss can get you out of a bad trade you should no longer be in. If you immediately sell your stock or crypto when it hits your preset stop price, then the fear of a bigger loss protects you from major losses. When there is fear, steer clear! If the market is in a state of panic, don’t fight the downtrend. If you’re in doubt, get out! Don’t try to rationalize or come up with excuses to stay in losing positions beyond their stop prices. HINT: Ignore the news and internet forums to prevent lame rationalizations for staying in losing trades. When there is too much fear in the markets, our flagship swing trade alerts service simply shifts to cash until a new buy signal is received. This prevents fighting strong downtrends in unfavorable conditions. GREED – Too much greed decreases your trading profits Greed is an excessive desire for money and wealth, but is a natural human emotion. A healthy amount of greed can help drive your trading profits, but too much greed will have the opposite effect. How to know when it’s too much greed Greed is when you have already made a large profit on a trade, BUT are still obsessed with how much more you could have made if you stayed in the trade longer. The mistake with this reasoning is that all gains are not real until the position is closed. Until then, a winning trade is only a profit on paper. Greed can also cause traders to make bad trades by ignoring solid risk management rules, which signals a lack of discipline in your trading or investing. To keep greed at bay on a winning trade, sell partial share size to lock in profits, then trail a stop higher on the rest. Proactive trade management like this is why our exclusive Wagner Daily stock picks have been consistently profitable over the past 20 years. HOPE – A fake friend who will take your money (but only if you let it) Hope, a feeling of anticipation and desire for a certain event to happen, may be the most dangerous emotion for traders. If you are an active trader or investor, the feeling of “hope” in your day to day trading activities must be avoided at all costs. Why is hope so dangerous for traders? Hope may prevent you from immediately selling a losing trade that hits its stop price—which is the top rule with most trading strategies. When you blow a stop, you will usually wind up with a much bigger loss than you planned to risk. You may get lucky with a second chance to exit (especially in a forgiving bull market). However, this is definitely not a situation you want to be in. A weak stock typically continues much lower before bouncing, which is why you must always honor your stops. Otherwise, that’s when hope can really sneak up on you! Hope will convince you to just “hang in there a little longer” because: “Big news is coming soon” “This stock will surely rally after their next earnings report” (Insert your favorite bullshit excuse here) Meanwhile, while you’re busy hoping, the price plummets and has a catastrophic effect on your entire trading account. Rest assured, the market will eventually punish you by taking your money when you slip into “hope mode.” But the good news is that YOU alone can easily prevent this scenario from happening. Simply always set protective stops to pre-define your maximum risk per trade. Be rigidly disciplined to follow your trading plan, and hope will never become an issue in your trading. Plan your trades, and trade your plan. REGRET – Remember the next opportunity is always just around the corner Regret is defined as a feeling of sadness or disappointment over something that has happened—especially when it involves a loss or a missed opportunity. It is only natural for a stock trader to regret entering a losing trade or missing out on a winning trade. But to master your trading psychology, do not hyper-focus on losing trades or missed opportunities. If you lose money on a trade, then simply evaluate what went wrong, learn from it, and move on. Don’t waste time regretting your original decision to enter the trade. What’s done is done. Conversely, you may feel regret when you miss an opportunity. This is human nature. However, you must train your mind to simply move on to the next trading opportunity—which is always just around the corner. When you allow this type of regret to control you, it becomes too easy to “chase trades” with risky entry prices. If you chase, your risk/reward ratio of the setup no longer meets the parameters of healthy trade management. Let’s say you plan to buy $DUDE stock at a $60 buy trigger price, with a swing trade target around $70. If you buy it, you plan your initial stop at $55. This gives you a 1:2 risk/reward ratio (risking $5 to gain $10). $DUDE stock rallies, but you miss your original $60 buy and instead chase the price to an entry at $65. If you don’t significantly raise your initial stop, you now have a negative risk-reward (risking $10 to gain $5). In this case, your regret of missing the $60 entry caused you to chase it to $65 (next time, just wait for a pullback). Avoid feelings of regret to ensure the math of trading is always in your favor. We always target a bare minimum risk/reward ratio of 1:2 for swing trades in our stock and crypto swing trade alerts services. Successful traders keep their minds disciplined to avoid remorseful thinking. original source
NASDAQ:QQQEducation
by rp-mtg
Bitcoin Looks so BearishHello friends. i saw a big and bad shape marobuzu candle. did you see it? we back under MA55 and after a pullback to it (22100 level) i think we should preapre to breakdown 20500 level and go toward 19000 again. please control your Risks. Protect from capital is the first step for any trader and investor. be patience... we dont have good economic conditions. and winter is coming... the weather will be cold and europe cant be warm... when you cant warm yourself , you cant buy bitcoin certainly. and US interest rate will grow another 0.75 in coming months... share me your opinion please. hope all of you enjoy my analysis.
BShort
by TraderAmin-KZ
8