"Mastering Trading Psychology: 5 Key Strategies for Success"

Let us present you the 5 tips for the week

(I personally use the stated techniques in my practices)

1. No euphoria:

If we get happy upon encountering a win, there is a big chance that we will get sad when facing a loss or a set of losses. Learn to remain in the equilibrium and to have a composed approach. Does a postman get happy while delivering a mail? Doubtfully.

2. Game of numbers:

Focus on monthly results rather than weekly, and on annual results rather than monthly. The more you zoom out, the clearer the picture gets. Stick to the risk management policy and treat trading as a game of numbers and probabilities.

3. Learning from mistakes:

There is a big difference between a temporary defeat and a permanent failure. You only fail once you give up. The rest of the time, you learn from your setbacks and keep improving. Similarly, if a period of drought and hardships takes a hold in the trading journey, treat it as a lesson and motivation to improve and optimise. Remember, every setback brings with itself a potential seed for growth.

4. Deep concentration:

A busy mind is similar to water in a kettle: unstable and boiling. The more we engage in overstimulating activities and consume external energy, the less efficient and productive we will be in our work. Whether it is analysing a chart or cooking an omelette, get rid of distractions and focus on the task.

5. No revenge:

The feeling of vengeance is bitter and anger-centered. After encountering a hardship or a loss (in the markets or in real life), take your time to let your thoughts and emotions re-calibrate before taking the next step. Similar to #4, you cannot expect to make rational decisions if your mind is busy.