Psychology

of Trading
Today I want to help you with a reflection on one of the final themes to be
successful in the stock market: The psychology of trading.

A good trading strategy should generate profits in 7 or 8 of every 10 operations

that are put on the market.

Having these results is an ideal average, however almost always there will be 2 or
3 operations that are not very successful and, in some cases, they may represent
losses that reach the stop loss or limit.

It is at this point that emotions begin to affect, and this can become so negative
that you could end up losing all your capital.

If your psychology and risk management is strong and stable, you can make very
profitable investments and earn money ... a lot of money!

The fundamental analysis with news and the technical strategy that we have in
the group, is one of the best in the world; thus, together we become prophets of
trading, because we can know in advance with scientific data, where the market
goes in almost all scenarios, even exceeding the average of 8 positive operations,
there being months where 10 of 10 are winners.

This can lead you to the temptation of risking 50% of your capital in a single
operation, which would seem very logical, but it is not and here is the most important
part of this conversation.

If there is a negative operation, which is completely normal in the market, half of

the capital would be lost, this triggers frustration, sadness, impotence and the
worst thing is that it does not end there.

In the next operation you will be contaminated by that last experience, and even
though that new operation is another currency, another news, another moment,
another country, another day, your mind will be controlled by the emotion of the
last operation and will not let you see the new scenario .
 A L L T R A D I N G F X . C O M
.Answer yourself, what does the new operation have to do with the last loss?

It can happen that you want to recover the lost, then you will put the other 50%
of your account in the operation and if you lose it will be the end and if you win ...
you will feel that you did it well !! (That's not real).

If you put less capital, much less capital and desire, your excited mind will say
(I should have invest more capital) and if you lose you will say (thank goodness I
invest little capital).

In the next operation you will not know what to do, because your emotions are
now in control and you only have confusion, demons, emotions, pressure and
uncertainty.

If you have a winning streak with a lot of leverage, you will feel, on the contrary,
that you are a forex trading God, you will have excessive confidence and you will
remain very leveraged.

Answer yourself again, what does the new trade have to do with the last profit
so that you have so much confidence that you will win again?

Sooner or later you will lose all your capital, and not because of the strategy but
because you are trading and investing with the emotions.

neither of the two emotional states is good, none! You must work hard on this.

If this is your case then

"You are trading what you feel, Not the scientific data you should see"

Then you must be cold as a rock.

If you won, nothing happens, because it is not a constant. If you lost, nothing happens
either, you know it is variable.
You must operate without emotions, just trade what you see and trust the entire
team.

What should matter to you are the following results:

1. Effective annual return on your capital.

2.Semi-annual effective return on your capital.
3.Effective quarterly return on your capital.

Obviously having excellent operational habits, risk management and a solid

discipline.

You can not be sad after an operation and want to quit.

You can not be overly happy in another operation and want to buy a Ferrari in a
week with a capital of 20 thousand dollars.

You really do not deserve that pressure and that roller coaster of emotions.

You deserve to enjoy the strategy, the team, the profitability, earn a lot of
money, but as an investor, not as a bettor.

If there is only one operation in a week and it is winning, excellent, If there is only
one operation in a week and it is losing, excellent too.

We have more than 10 years working with the trading platforms and I can tell
you that the market is still there, the profitability is still there, the good operations
will come, but those small bad operations can destroy all these wonderful things
because of the emotions.

My advice for you today is the following:

Do not risk more than 2% of the capital, if it is an operation where the take profit
or profit is higher than 100 pips, you can allow yourself a little more risk (as long
as you have been disciplined before)

Allow yourself more risk when you internalize everything I want to tell you, not
before.

A L L T R A D I N G F X . C O M
 A L L T R A D I N G F X . C O M
You can even have an individual, conscious, exhaustive training to create the
HABIT of a true investor.

Remember that these are easy decisions ...

They are a thought away. Today I did it badly, but in a second I can do it well.

I send you the best regards from here, we always work in the analysis, so you can
have the best results in your account, so together applying all these mentioned
concepts we can be very successful.

I would love to read your comments on this, if it has happened or not, what goes
through your mind in those difficult times or euphoric moments and what are
your investment plans taking into account all the above for this year of trading
together.