While dealing with the trading, some people get profits and some can not. This is because many people do not know about the trading psychology. They do not know how to control their emotions. Sometimes, market goes up rapidly ans the nest moment falls down. When these sudden fluctuations come many people will lose or gain lots of money. If the trader knows about the trading-psychology, then he can make more profits.
Trading psychology is important for every trader to keep his mind at peace and get more profits, while doing trading.
- Exchange rates fluctuates every minute, no one can predict it when it goes high or low. During these fluctuations, some people go greedy when the market is high. Going greed means, expecting more profits by continuously increasing the investment volume. Going greed is not always good. If the trader follows the trading psychology then the trader can control his greed.
- While doing trading, many traders feel emotional. By following trading psychology the trader can remove his emotional feelings, while in the trading.
- Some trader lose small amounts, but they can not get good returns when the market is good. Due to these previous losses some traders become very nervous. To avoid the fear a trader needs to know the trading psychology.
All the above points clearly illustrate why a trader needs to know trading psychology for trading.