The Psychology of Trading: A Closer Look at What Makes Traders Tick

A traders emotions and mental state are critical aspects of success in the financial markets. After all, traders are humans, and humans are emotional creatures that sometimes neglect knowledge, rationality and experience in their decision-making process. In the high-octane world of trading, emotions such as fear, greed and panic can be triggered quickly as your trades move between gains and losses. Trading Psychology is not black or white though

If you’ve only just begun to think about how emotions can impact your trading strategy, you are not alone. The massive growth and widespread adoption of online trading platforms has made the financial markets accessible like never before. Each day young, inexperienced and overly excited traders deposit money and start trading with the dream of making millions. Little do they know that the biggest barrier to success is themselves.

How important is trading psychology? Let’s just say that the psychological state of investors and the crowd at large have been studied at length by behavioral theorists, economists and even investors themselves. These studies have yielded trading psychologysome important findings about the negative impact of emotions on trading and how investors can learn to control the mind traps that cost them so dearly in the market. In this primer we look at four common “emotional” traders in order to learn from the triggers that cause them to fail. If you’re reading this, you’ve probably let all of these emotional triggers impact your trading behaviour at one point or another.

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With over a decade of trading expertise and 100,000 fulfilled clients in 160 countries worldwide, easyMarkets will tick all your boxes whether you are a new or experienced trader, affiliate or introducing broker. Trade currencies, commodities, metals, vanilla options and indices from one place without the jargon, complicated offers and confusing terms! Welcome to the exciting world of trading. Welcome to easyMarkets.
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easyMarkets

With over a decade of trading expertise and 100,000 fulfilled clients in 160 countries worldwide, easyMarkets will tick all your boxes whether you are a new or experienced trader, affiliate or introducing broker. Trade currencies, commodities, metals, vanilla options and indices from one place without the jargon, complicated offers and confusing terms! Welcome to the exciting world of trading. Welcome to easyMarkets.

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