Are you tired of losing just because you were not able to hold your emotions? Since you are just a human being, you cannot totally eliminate emotions every time you trade. Fear and greed will always find their way. What you can do is to control it and manage it properly so it won’t affect your trading decisions.
If you’ve been trading for a while, then you understand that strange feeling that you get when the price in the market starts to go up, according to your speculation. However, the price continuously rose to a couple of dollars. Your plan says that you should wait for the ‘x’ point to withdraw but you got too scared to lose that you immediately pulled the button and took out the small but safe gain that you had. The next few hours, you saw that the profit gain was supposed to hit your target if only you didn’t withdraw prematurely.
This trading decision was made out of impulse. Emotions took over which caused you to close your positions prematurely. If you want to avoid such mistakes in CFDs, take some of these tips to heart.
The safest way to practice trading is none other than through a simulation account. For new traders, it is highly advisable to trade first in a demo account before you go live. Take your time and don’t make hasty decisions. Learn everything about the system, practice your trading platform, experiment until you feel the confidence that you need to perform well in the financial market.
This one is very important. A trading plan will guide you to the right path when you feel as though the market is starting to turn its back on you. Most of the time, you feel greed or fear when you see that the market is taking a different direction. But with a trading plan, you know that you have something to look up to. Also, when you create a trading plan, you must not get tempted not to follow it. Because if you do, you will end up in complete disaster.
You can’t always say yes even if you are about to go to a different path than the ones mentioned in your trading plan. Just relax and go over your trading plan from time to time. Check if the signal that the market is giving you is right.
It’s understandable that losses are very painful. No matter how small it is, losing is really hard to accept. But in trading, you will come across a lot of losses, and without learning to accept it, you cannot move on and open another position. You cannot always win in the market and it applies not just to newbies but to professional traders as well.
Trading CFDs doesn’t always give you positive results. You are going across the uncertainties of the market and you certainly cannot control the outcome of your trades. You may lose this time, but with the right risks management strategy, your losses won’t certainly overpower your gains.