Surely you have heard the expression “trading is emotional” and when you start in the world of financial markets is normal to be happy for your gains or fear of failure for your losses. The reality is that the more you can separate your emotions from your operations, the better you will be able to manage an account. Keep in mind that the versatility and efficiency of a trader depends much more on his emotions than on his technical knowledge.
It is popularly said that trading is 80% emotional and 20% cognitive, therefore it is important to strengthen our thoughts by performing activities such as trading hours, reading on related topics and audios that provide on the importance of mastering your thoughts.
Trading with a demo account can help you learn how to use the different trading platforms and the use of their tools, but it does not help in emotional aspects, since you will not have real feelings when you win or lose real money. Therefore, the ideal is to start as soon as possible with a real account, in this way your emotional intelligence will be put to the test, because you will be excited in a positive way when you are winning or on the contrary you will feel fear and anguish when you lose.
Human beings are full of positive and negative emotions, however we must learn to master them if we want to become great traders. Here are the emotions that are directly involved with the financial markets and that you should learn to control.
Fear has its own phases, ranging from uncertainty to doubt, to anguish and ending in despair.
Therefore, we must work on positive aspects such as confidence, discipline, self-education and independence.
Psychology will always be a factor that will influence decision making, it will not be easy to control when you find yourself operating in the real market, however with practice and hours of trading you will be strengthening your emotions. The key is to be patient and be calm when you start an operation, this accompanied with books, audios and a good mentor to provide you with knowledge. In this way you will avoid drifting and possibly mitigate having large losses.