Sometimes the technique is powerful, but why are there still many traders who fail to make a profit in trading? On the other hand, it's fun to lose money.
One of the factors that hinders a trader’s success is when he fails to control psychology in trading. This article will dig up some psychological mistakes that you as a trader may not be aware of.
#1 F.O.M.O trading
FOMO is an abbreviation for "Fear of Missing Out" which is a common term among traders. This FOMO expression describes a situation of fear of missing an opportunity.
Traders are often caught in this situation which makes them chased in the market for fear of missing out on the opportunity to make a profit. Eventually causing them losses due to entering the market at the wrong time and place.
#2 Revenge trading
Surely many traders have actually experienced this situation. When the market moves in the opposite direction of your trading position and you suffer a loss, you start to get emotional and determined to reap the profits from the market.
However, the probability for you to destroy your account is very high as a result of such actions.
#3 Gambler Trading
It becomes a problem when a trader confuses the correct way of trading or trades in a gambling way. This will be related to risk management in trading. You need to prepare a complete trading plan before entering the market.
The selection of a suitable lot, a solid exit plan and some important things to look at will help you reduce risk and prevent you from trading blindly.
