From the day you decide to move in a demo account for a real account, things change so that you can never be fully prepared.
What is the psychology of trading?
Trading psychology deals with the idea of changing trends, that you will go through when you have an active market trading for your money. Once trading in a just demo account , it looks like that it will be easy to make currency, and there no one will find any reason why you cannot start earning money for the live account. Then you may go for the first live trade which will make you feel confused when to take profits or cut losses. You’ve just revealed the outcomes of trading psychology.
How trading psychology affects your job?
Psychology of trading may affect your decision when you are negotiating a trade. There are mainly two emotions which act a sources to ruin several forex traders in recent years. These emotions include fear as well as greed. The fear of not being in a business when the opportunity emerges, or to pack up a trade early, without giving the opportunity to become profitable. Emotion of Greed may take you to make business that is too large or rather risky to try to make big profits. Greed can also lead to wait for the “last pip” of the movement instead of getting satisfied with the “good race.”
Methods to beat emotions
The superb way to fight against the problem of the psychology of negotiation is to create a plan of trading and then stick to it. Use of well-designed risk management rather than allowing everything to get on your head is a good idea. Remember, master your emotions, give you the opportunity to address the real profits in the trademarkets, even while emotions are very high for others. If you could master your emotions and follow a good risk, you can become a successful trader.