Trading while under the influence of one's emotions can be very risky. You are setting yourself up for nothing but frustration and disappointment. When trading, it's best not to let your feelings get in the way.
This is why it is essential to keep a check over our emotions while trading, as it will tell us the direction of where we should 'move' our trading. If we cannot 'move' our trading through the right set of emotions, the chances are that a trader might lose. Emotions, therefore, become an impediment to successful trading.
Emotions like a subtle fear of loss that makes you always remember to use risk management, are not harmful. But emotions like greed and anger because of which you can lose your capital, and all of hard earned profit through overtrading and revenge-trading are definitely regretful. That is why it is best to develop trading psychology from the beginner stages of trading.
First of all, you need to understand that trading is a very emotional activity. It can cause damage. It doesn't matter if it's a bad emotion or a good one. A trader can have a good mood and strongly believe in himself. So he can do rash things and lose money.... I think that would be very sad! That's why you have to learn to trade with real money. Demo account is needed only to study the trading platform. It doesn't matter what it is, Metatrader or some custom platform. Then you need to have a minimum deposit and learn to trade. I think that would be the right thing to do!
Emotion is like an enemy that appears from ourselves, most traders proven when trading based emotion the result eventually facing to failure, trading need clear and calm minds, it will make us to become more comfortable and will able to create plan trading based on minds and not based emotions.
Although it is frequently said that fear and greed are the fundamental drivers of market behavior, other emotions, like anger and disappointment, are also potent motivators of behavior and one should always be mindful while trading.
Traders can either be smart by utilising their emotions to their own benefit or do the opposite. It depends on their approach to the marketplace and how they analyse and make moves. Emotions don’t have to be negative, traders just need to find a means where they learn how to balance it out so it doesn’t affect the trading process.
Some of the most common emotions traders experience include fear, nervousness, conviction, excitement, greed and overconfidence. A common cause of fear is trading too big. Trading with improper size magnifies volatility unnecessarily and causes you to make mistakes you normally wouldn’t make if you weren’t under the stress of risking larger losses than normal.
The human mind has the potential to be either the greatest friend or the worst opponent. Additionally, it can be difficult to manage your emotions at times because trading exposes you to a wide spectrum of emotions due to real money involved. I found that taking regular breaks, doing some meditation, pausing after a string of wins or losses, and sticking to my trading strategy all helped me during this journey.