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How To Train Your Trading Psychology

Discussion in 'Beginners Bootcamp' started by CryptoPopo, Mar 12, 2018.

  1. CryptoPopo

    CryptoPopo Private, 1st Class

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    Here's a really good way of improving your trading psychology :

    • Make demo accounts 'like' real accounts : Say you wanted to deposit $100 in your real account. A good way to train is through trading in demo account but with a budget of $100, no less. So you would always keep the principle of only having $100, and by trading using only $100.
    • Pick the best time for trading : Some people trade better during the night, some people during the day. Yes, I know it sounds stupid but it affects. Choose the best time for your trading after evaluating the number of profits you make trading in the morning, afternoon, evening, and night.
    • Take short breaks : Most people after making trades, tend to keep on trading like they are in a 'winning streak' or something like that. Or from losses, they would want to get their money back. It is always good to re-set, take a break, and start again in a few minutes. Grab a cup of coffee, or do a few push-ups and stuff like that. After all, it is not good to constantly stay in front of your computer.
    • Withdrawing funds : I keep a principle of 'if i make more than 80% of my deposit, I would withdraw the funds'. This way, the funds are being kept in your bank accounts, not your broker. This is for safety reasons, in case of emotions, or anything like that. It is better to keep funds in your bank account, rather than the broker itself.
    These are the things that I have been doing to improve my trading psychology every single day. If you have a good way of improving that is not listed above, feel free to comment. It would be good for me to learn new things to improve my trading psychology.
     
  2. William Barnes

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    When engaging in forex trading, each trader needs to build up a proper outlook that trading is not similar to any office related work that will ensure a fixed handsome salary after the end of each month. Rather trading sometimes will offer more than the fixed salary or sometimes, due to sudden changes in the market, it will cause to lose your money. But this characteristic won’t make trading similar to gambling! However, trading without skills and knowledge can resemble to gambling since there is no certainty that a trader will earn any money or not.

    But if a trader engages in trading after full cautions and analyzing all aspects he may expect a good margin. Traders will require proper trading skills and knowledge so that they can handle any situation and sufficient money.
     
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  3. EURUSD

    EURUSD Sergeant Major

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    Might will good if any trader already able treat demo account like as on real account, hence they will learn seriously to manage money on demo account, but sometime as human can fooled because on demo account only usin virtual money, might better to start trading on real account but choose micro account cent, and deposit with small money like as 100$ already good for micro account
     
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  4. dianajs

    dianajs Private, 1st Class

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    I would add that one should trade as much as possible. The more you train, the more you learn, the more experience you acquire, and with experience comes a clear head.
     
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  5. CryptoPopo

    CryptoPopo Private, 1st Class

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    Yup, so true. If you put in a trade without even knowing how to trade, no strategy, etc, it would count as gambling. But if you trade using a strategy or know how to analyze, it would count as work effort. And every effort you make in what you are doing will always show results. Am I right or am i right?
     
  6. CryptoPopo

    CryptoPopo Private, 1st Class

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    The moment we change to real account, it would be a totally different trading atmosphere.
     
  7. CryptoPopo

    CryptoPopo Private, 1st Class

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    True that!
     
  8. EURUSD

    EURUSD Sergeant Major

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    Yes it will really different, especially about psychology trading, so many trader that already having experience trading on demo account then start on real account will facing different emotion, I think this is normal because like as you said different atmosphere, on real account there are expectation become real profit but not on demo account
     
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  9. dianajs

    dianajs Private, 1st Class

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    I agree. One also doubts their decisions more once they move onto a live account. At least I did when I was a newbie.
     
  10. MarryLo

    MarryLo Recruit

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    I want to add that many people will advice you in the different ways according to their experience. Most of the traders know how to make money on the Forex market but they do opposite in practice beacuse human brains are constructed to perpetuate survival, not make money.
     

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