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Don't Trade Without Knowing Trade Psychology!

 


Trade psychology in financial markets is all of the situations that traders have lived for years and are fixed with experience. Trade psychologies can be divided into two groups as positive psychologies and negative psychologies. If we define positive trade psychologies with a single name, we can say "Comfortable Trade". Negative trade psychologies are; There are four types: "Revenge Trade", "Extreme Fear or Courage", "Fear of Missing Out (FOMO)", "Fluctuating Market Fluctuating Psychology".

A person decides in two ways in terms of his mentality. These; It is logical and emotional. Trade psychology overshadows people's logical thinking, as they directly affect the emotional thinking structure. Therefore, the trader moves away from a logical form of trading where he is educated and has rules and trades completely under the influence of his emotions. As a result, most of his trades are wrong and traders lose money.

Professional traders know the investor and trader psychology. Since they received their education, they know how to deal with negative trade psychologies and act consciously and constantly make comfortable trade and investment transactions. They know that investment is ultimately based on probability, and they predetermine what moves to take (for example, to open hedge positions) if the expectation is not met. In this direction, they are always in a comfortable trading psychology. This is what separates the investor, the trader from the gambler. Gamblers never have a positive psychology if they are over-expecting. They are in a constant state of uncertain expectation and they are in a restless, negative psychology.

This is what separates the investor and the trader from the gambler. Therefore, it is right will be for traders who want to make their own investment decisions in the financial markets, first of all receive financial literacy training, learn very well what are trade and investor psychologies, and apply all this for at least 6-8 months with unreal money in a demo trade account. In the financial markets, sometimes even professional investors open positions from the wrong place and lose money under the influence of negative trade psychologies. That's how important and vital trade psychology is.
There are two reasons for losing money in financial markets:

1) Lack of Adequate Education and Equipment
2) With the Influence of Negative Trade Psychology


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