Even novice traders know that in this business you need to be able to control yourself. For constant earnings both in futures and in other markets, it is necessary to be guided only by accurate data and cold calculation. However, each trader is more or less subject to his emotions. First of all, it’s fear.
The fear of losing money arises immediately after replenishing the account. This problem is especially relevant for beginners, since they cannot be confident in their abilities. Also, fear arises in experienced traders. Usually people who have invested little or extra money are aware of the risk and are mentally prepared to lose. Experienced market participants know how to cope with this fear, but it is impossible to completely overcome it.
Directly related to it is the fear of entering into a deal. Light jitters can begin even before a small investment, not to mention large transactions. In the case when a trader risks his money by entering a trade and not being completely sure of its profitability, he begins to worry about his finances.
It is possible and necessary to fight these fears, because emotions most often have a negative impact on the profitability of transactions. Experienced traders recommend gradually reducing anxiety to nothing. First, you need to become confident in your abilities. To do this, you need to follow your strategy, and always improve your level of skill in trading. Also, before starting real trading, you should try your hand at demo accounts. Thus, you can either become more confident after successful transactions, or think about the prudence of investing real funds in case of losses on a demo account.
Since real money transactions are very different from free ones on a demo account, you should start with small transactions. In the case of a successful start, self-confidence can play a cruel joke. Often, new traders begin to think that after a few successful trades, they have already settled in and can play big. This state of the trader leads to large losses.
Often experienced traders are prone to such a condition as tilt.
Tilt is the state of a person when he gives in to emotions and begins to make mistakes. In addition to the case considered, it happens that a trader, after losing part of the funds, wants to recoup, without realizing the risk and putting at stake much more than he would put in a calm state. Tilt can be dealt with in a variety of ways. The most important thing is to stop trading when tilt appears. The best thing is to close the trading terminal and postpone exchange operations for the next day.