Every day I get tone of emails and messages from traders, specially from beginners. One of the most often asked questions is how to control emotions in trading.
So today I will share few tips, that I hope will be useful for you.
First of all, don’t spend much time trading on Demo account. Yes, you have to start with Demo, but as soon as possible open live account with small investments. The thing is trading on Demo and on Live account is much different. You can build strategy, get consistent profits in your Demo account, but when it comes to real money your emotions will influence your trading decisions.
The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading…
One more important advice I can give you is to be realistic. Most of beginners expect to get huge profits every day and always hunt some mysterious Holy Grail.
The reality is other, most of the traders make almost all their annual returns thanks to few big moves (as such moves don’t happen often). All other time they have some profits and some losses. Because of unrealistic expectations beginners are getting frustrated about trading and get into psychological trap and as result make a lot of mistakes.
In this business if you’re good, you’re right six times out of ten. You’re never going to be right nine times out of ten.