When you watch a movie, what sorts of emotions do you feel? Do you feel thrilled when you watch an action movie or scared when you watch a horror movie? You might say yes. Again, a slice of life genre of a movie can make you reflect on your life. So, depending on the type of your movie, your emotion changes. Your emotions vary from happiness to sadness, thrilled to fear based on the type of movie you are watching. Again, it is also not impossible to feel bored when you come across a slow boring one. So, this change in emotions also changes your outlook when you watch a movie.
Now in trading as well, there are varying emotions. These emotions help to see your trading profession in different outlooks. For example, if a trader is confident, he finds trading to be very easy and that becomes a matter of happiness for him. On the other hand, if a trader is afraid of losing, he might find it pretty scary to make deals. So, it is needless to say that apart from all technical analysis, trading emotions also play an important role in the trading level of a trader. Because, even though this platform is completely dependable on numbers, certain criteria depend on human decisions and trading emotions play the key to making those decisions.
So, in this piece, we will be discussing some of the trading decisions that can affect your trade.
Fear
Many traders are often afraid of trading. The simple reason behind that is the fear of losing money. This emotion is mainly faced by novice traders who have little experience and capital to invest. So, they are often afraid of what might happen if they lose the trade. That’s why they find it a better option to stick to the safe zone and trade for lower profits. But this fear can easily be thrown away if a trader is willing to make some changes in his trading and has a good technical analysis. Bringing some changes in trading style and experimenting can help a trader with this emotion.
Confidence
When a trader has a good investment alongside a good market analysis, he can stay confident about cutting good deals while trading. It is because when a trader speculates that the trade will be in his favor, he gets to deal with a larger investment, and dealing with a larger amount of investment means a larger profit. So, he can easily come up with a decision that is beneficial for his trading. Never forget the fact, confidence is the key to success in the ETF trading industry. And to become a confident trader, you should rely on the brokers like Saxo Bank as they can give you flawless trading environment.
Greed
Greed is one of the most malicious human emotions where one has the desire of wanting more and to claim that he can do anything ruthlessly. When a trader becomes greedy, he doesn’t care about what is right or wrong. To him, only money matters. He can even go for unethical ways to make profits. For that, he often breaks the rules. But doing things hastily is not always beneficial for them and often can lead to downfall. Many top tier traders have faced a fall due to their greed for money.
Excitement
Excitement is a sign that a trader is enjoying his trade. A trade feels the most excited when he is about to make a profit. People’s excitement increases when they think about a probability like what is going to happen, how it is going to happen etc. This makes a trader look forward to his trading as well as give his best to get the best optimum result.
Anxiety
Anxiety is a common trading emotion where a trader feels restless about his trading. He might feel like making mistakes or fear losing. Anxiety takes place when there is something wrong in a trade. It is a sign that you are making the wrong decisions about trade. If you think you are not feeling sure about a trade then it is better to get out of the trade as soon as possible.
Now as a trader you need to identify your trading emotions and use them in your favor. When you learn to use your trading emotions in your favor, you will also find it easier to make the right decisions in trading.
