Human behavior cannot be fully understood even by experts. It is complex and not even a thorough system or a mathematical expression can understand its depth. Trading CFDs isn’t conventional wherein factors are always in constant motion. But human emotions contribute so much to CFD trading and you need to understand such emotions to be able to minimize and eliminate them. Emotions can cloud your trading decisions and might hinder your success. Take note of these emotions and try to control them as much as possible when you trade.
Fear is felt right before any danger happens. This is similar to CFDs, you feel anxiety before anything happens with your positions. Unfortunately, this feeling isn’t good for you and will just hinder your way to success. It affects your trading decisions and your career as a whole. Successful traders always take hold of their emotions and control them especially when they are making important trading decisions. Instead, they put their 100% focus on the most important aspect of trading.
As the most insidious emotion, euphoria affects a lot of new traders and some experienced traders. If you don’t check it out correctly, you won’t ever realize it as the emotion creeps out from you. Seeing that your trades are doing great, you will have a boost of confidence. But too much confidence will lead you to disaster. It is similar to overleveraging, both take you to a dangerous path if taken lightly. As much as possible, the only thing you can do to avoid the feeling of euphoria is to follow your trading plan diligently.
There is greed even before you start to trade. Much if you start to win on your trades, you will get greedy to win more and you will become eager to win even if you don’t follow your trading plan. The high expectations to make quick cash will only result in your doom. Of course, everyone wants to have a decent amount of results once in a while. After all, the returns are the driving point as to why we are trading. Greed can result in a lot of negativity in trading including overleveraging, overtrading, and holding on to a losing trade.
If you want to overcome your greed, you need to understand that you cannot trade every time there is a good signal. You also have to let you. Don’t try to trade every single time, you must examine that perfect opportunity to trade. Another thing to consider is to write a trading journal. It should be able to explain the conditions that you want to follow which will eventually lead to your success.ClickFunnels Demo & Tutorial
The main reason for panic among traders is nothing other than a series of losses. Some traders will start to think that they are actually not good enough at trading CFDand then decide to quit. Others are blaming their luck for their misfortunes. But actually, the reason for your losses is their lack of risk management and money management skills. They fail to analyze the market properly which causes failures.