Following others‘ opinions
Restrained emotions and logical sense are considered essential trading tips required for a profitable trade.
All human beings live with emotions. Excitement, euphoria, fear and panic are common to all of us yet we, as traders, should know how to restrain them. It would be unnatural to say that traders should find a way to get rid of these emotions. No, they should just control them and minimize their effect.
This may occur gradually when you start reducing the risk and trade calmly without the great fear of suffering losses. Your calmness will help you realize your goals and little by little reach it.
Accept a loss as a natural part of your trade. Before starting the trade you should have already estimated the risk extent of trading. So now you should look ahead without being depressed of losses. The life itself is volatile; it is a wave of ups and downs. No one is happy all the time and none cries constantly.
Now let’s imagine the same situation in trading. Your each unsuccessful trade can be accompanied by a successful one. You should not fall in a panic and even worsen the situation.
Before deciding to invest in foreign exchange you should carefully consider your level of experience, investment objectives, and risk appetite. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor in case of necessity.
Understand the nature of your failures and try to accommodate them if they can’t be eliminated completely. Do not hurry to make decisions. Try to think over each step you make otherwise your ad-hoc approach towards trading will only harm you.
While it is a great idea to listen to others’ opinions on the market and discuss your opinion with them, you should be the one to make decisions. Remember that whatever you do, you do it for yourself: it’s your money and your success. Hereby, try to work out methods that suit you and not your friend.
As to conclude it would be worth saying that logical approach, constrained emotions and self- confidence will help you overcome all the trading difficulties.