Top 3 Ways To Improve Your Trading Psychology

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Top 3 Ways To Improve Your Trading Psychology

Top 3 Ways To Improve Your Trading Psychology


  Trading psychology is one of the major aspects of trading that every trader should conquer. You can only make money out of the market with the right trading psychology. In order to become a successful trader, you need to know these four things-

  1) Risk Management

  2) Trading Psychology

  3) Trading Strategy with an edge

  4) Life Management 

   In today’s article, we will look at one of the most effective ways to improve your trading psychology to perform well in live markets.

Here are some of the most effective ways you can use-


1) Always be prepared for the worst.

  This principle will help you a lot in improving your Trading Psychology. Often, when new traders enter the market, they always think of making handsome profits, and with the hope of making big profits, they take more risks and end up losing a lot of money.

  In order to counter this psychological problem, you need to truly accept the risk of the trade that you are going to take while executing the trade. For example, if you are taking Rs.2000 risk in one trade, then before executing the trade, you should be okay with losing that much money then and only then you can trade with high efficiency, and this is the right trading psychology. Otherwise, you will always be in fear of losing money.


2) You can not catch the entire move of the market.

  In order to become a better trader, you have to accept the fact that irrespective of any Intraday Trading Strategy you use, you can not capture the entire move of the market. Simply put, you must leave some money on the table to make more money.

  Amateur traders often try to capture the entire movement of the market, but as an intraday trader, your job is not to encash the entire move but to make money from being on the right side and exiting the trade whenever it is necessary.

  Well, that being said, it is not that you should exit your trade with small profits or without any exit plan; that is not the right trading psychology. In order to secure your profits, you should always use trailing stop loss so that you can hold your trade so that it can potentially make big profits, or you can exit the trade with the help of trailing stop loss so that you can secure your existing profits.


3) Do not change your trading strategy; just because you made a loss in 2 to 3 trades. It can mess up your trading psychology.

When it comes to trading strategy, many traders change their existing strategy when they continuously lose 2 to 3 trades, and that is the wrong trading psychology.

   In order to improve your trading psychology, you need to accept the fact that every trading strategy has a drawdown, and you have to accept those drawdowns. Here, the right trading psychology will be to think of a long-term goal and to understand the fact that to become profitable; you need to have a long-term vision. So, whenever you apply any trading strategy, make sure you give a sufficient amount of time to that strategy so that you can actually know how effective your strategy is over a longer duration of time.

  So these are the top 3 important things you should take into account to improve your trading psychology.

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Happy learning!

 If you want to know more about trading psychology, you can refer to our previous blog on Why is trading psychology so important

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Trading Psychology



    1. Glad that you find the blog helpful; we constantly try to bring helpful blogs for our traders and will continue doing so.

  1. Psychology is the .most utmost thing to stay in trading for long period.

    Enjoying the loss in trading means we have learned something new concept to avoid loss in future trading

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