What problems can a trader face and what are the reasons behind?

27 déc. 2022

What problems can a trader face and what are the reasons behind this?

Trading is an exciting activity, but for a beginner, there are many difficulties along the way. Today we will talk about a few of them, revealing the reasons for their occurrence!

Fear of closing a position by stop loss or fear of loss.
Often the reason for this lies in the trader's fear of failing and losing faith in himself.

Too early exit from profitable trades.
This may indicate excessive emotional involvement and dependence on the result. In this case, there is a strong anxiety, which is removed when the position is closed.

Adding to a losing position (averaging).
This sign may indicate the unwillingness of the trader to admit his own wrong and fear to take responsibility for the results of trading.

Excessive joy from a profitable trade.
This signals that a trader's self-esteem is directly related to trading results.

Restriction of profits and a feeling of undeserved success.
Internal belief that the trader does not deserve the money he has earned: the "impostor syndrome" that annoys many specialists.

Oversize position.
This is an alarm sign that warns that the trader does not fully understand the risk and does not understand the importance of good money management.

ost-Trading Irritability: Emotional swings caused by anger, fear and greed.
A trader attaches great importance to the results of trading, and not to the trading system. At the same time, he forgets about learning new tools and personal development.

You can't afford to lose.
This problem is typical for trading on borrowed funds or on family savings. From this, the trader's fear of losing becomes stronger, and the clarity of thinking becomes weaker.