Trading can be an emotional roller coaster. Let us help you gain an understanding of why the psychology of trading is important, and how they can impact trading results positively and negatively.
Psychology has always been an important factor in trading and investing in financial markets. The study and understanding of this aspect of trading have grown tremendously since the turn of the century, with the past 20 years seeing numerous books and courses devoted to the emotions and psychology behind trading behaviour.
Such an important subject demands that any beginning trader gains an understanding of why emotions and psychology are essential, and how they can impact trading results positively and negatively.
Let’s explore the negative “psychological biases” that can trap new and even veteran traders, and consider how to avoid them. We’ll also look at positive steps traders can take to set up a constructive trading environment, with an end goal of increasing longer-term success – and profits.