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Control your Temptation of Trading
by Richard Smith
The market is very attractive and people come to trade like bees coming to honey. If you ask the traders, you will find one thing in common. They have become addicted to placing trades and it gives them pleasure. If you are a novice trader, it will take some time to understand how high risks trade can give them excitement. Trading becomes like a drug to them and they get excitement from the tension. They cannot control their temptation and they wait eagerly when they will place the trades. It results in losing money for them and many people also lose their investment. This article will give you some tips that you should follow if you want to keep your temptation under control. It does not grow in a day but slowly it develops. The people do not notice it but when they do, it is too late. It is like smoking cigarettes every day until you realize one day you have become a chain smoker. We hope this article can help you in regaining some of your control over your temptation.
Greed and fear
Greed and fear are the worst enemies of the traders. People in Australia are very smart. They know the psychological impact of losing trades. Even though they are completely new, but the majority of the traders managed to make a decent profit without losing a significant portion of their investment. Some of you might say, more than 90% of the traders are losing. So is it really possible to change your life based on the trading profession? Well, the answer lies within yourself. If you are determined just like the Aussie traders, chances are very high you will be able to make a decent profit from this market.
To become a successful trader, you must learn to control your greed. The greedy traders in the CFD trading industry always take unnecessary risk. They simply don’t understand the importance of risk management in the retail trading market. However, some novice traders fear to place the right trade at the right time. They are too much conservative about their investment. You need to find a way to control these two factors. Without having a solid control over your emotions, it’s nearly impossible to ensure consistency. Start investing money in yourself and learn from the successful traders. By taking the proper guideline you can significantly reduce the risk factors in trading.
Ignore when you want to trade the most
The first trick to control your temptation is by ignoring your minds. The human mind is risky and it gives us many wrong signals. For example, when we are placing trades, it is often advisable to go with our hunch rather than following our strategy. Some people do it but the result does not come out as expected. They lose more money than they expect. If your mind ever tells you to place a trade because the time sounds right, do not place before analyzing the chart and the price trends. If you can continue these for a few weeks, you will succeed in controlling your temptations. Remember just not to overtrade one day because you cannot control them after some time. Ignoring them will give you the strength to control your temptations.
Do not greed
It is the second trick that can control this bad habit. If you ever greed, every profit that you have made will be lost. Every loss is the result of greed. The traders cannot control themselves when they realized the opportunity to make money. As a result, they begin to greed and they place risky trades. The most common outcome of greed is not controlling your temptation. You know it is not good for your investment as the trades may lose but you cannot help yourself. You still place the trades and lose the money. Try to control your temptation and you will become the successful trader you have always dreamt of.
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