Are you also facing the same problem not to follow the process of trading

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Hello friends.  

Are you also facing the same problem not to follow the process of trading, so you are not alone

many people face same problem before quitting read this.   


Human psychology often leads traders to deviate from their planned processes for several reasons:


1. Emotions: Emotions like fear and greed can override rational decision-making. Traders may abandon their strategy when fear of losing or the desire for quick profits takes over.


2. Overconfidence: Traders sometimes become overconfident in their abilities, leading them to take unnecessary risks or ignore their trading plan.


3. Impulsiveness: Impulsive decisions can occur due to the need for instant gratification. Traders may jump into or out of trades without proper analysis.


4. Fear of Missing Out (FOMO): Traders might enter trades hastily when they see others profiting, even if it doesn't align with their strategy.


5. Loss Aversion: People often have a greater aversion to losses than they have a desire for gains. This can lead traders to prematurely exit positions to avoid losses.


6. Anchoring: Traders may fixate on a specific price point or outcome, even if market conditions change, which can result in poor decision-making.


7. Recency Bias: Traders tend to give more weight to recent information and trends, leading to impulsive decisions that don't consider the bigger picture.


8. Lack of Discipline: Maintaining discipline can be challenging, especially in fast-moving markets. Traders may become undisciplined and abandon their trading plan.


9. Lack of Experience: Novice traders may not fully trust their strategy due to limited experience, leading to second-guessing and deviations.


10. External Factors: News, social media, or advice from others can influence traders' decisions, causing them to stray from their planned process.


To overcome these psychological challenges, traders must recognize these biases and emotions, develop self-awareness, and practice discipline. Following a well-structured trading plan and having risk management strategies in place can help mitigate the impact of human psychology on trading decisions.



Wise investing 

Grow with knowledge 



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