As legendary investor Warren Buffett says, be fearful when others are greedy, and greedy when others are fearful, success in trading demands emotional discipline by acknowledging biases and adopting systematic strategies, one can transform emotions from enemies into allies as it is one of the most required strategy when it comes to trading and investment. The psychology of trading especially when the market swings, one needs to know how to channel his or her inner emotions by taking a deep breathe, consulting the trading plan, and trade with clarity your portfolio and sanity will thank you in the long run as pressure and trading are not friends.
Creating a Trading Plan and Stick to It has been the best approach most successful traders take as one need to track his trading strategies by Defining entry/exit points, risk tolerance, and goals. Writing it down helps to give clarity especially When emotions surge, referring to the plan as your anchor helps in building someone's psychology.
So before you open that new trade ask your self this questions
Am I emotionally balance to handle the volatility of the assest
what's my profit target
what's my exit strategy
How much loss am I willing to risk
Emotions like fear and greed sabotage trading success, Combat them with a solid plan, risk management, and mindfulness. Trade smart, not hard these are words I will try to reaffirm to my self on a daily bases
