When traders first begin to deal with CFDs, they often find themselves experiencing a range of emotions, including excitement and relief. However, as their experience and knowledge build and trading becomes more commonplace amongst their daily lives, this is likely to change.
Many individuals who are trading CFD’s take part in these activities as a way to make money. However, there comes a time when the trader experiences certain emotions. These may include fear, aggression, anger, avarice, and greed. When someone is experiencing negative emotions due to the downward movement of an asset value, that person must take action. You can do many things to eliminate or minimise these emotions from affecting your success as a trader.
Use Positive Affirmations
When you constantly tell yourself that things will go badly, it is only natural that that thought will enter your head when you are in a trade. Rather say positive statements about how the future could play out instead, this may take some time, but you can train your brain to think positively with continuous practice.
Think About Your Losses as Capital for Future Trades
Instead of feeling like one loss makes everything else meaningless, look at each loss as an opportunity to learn something new. Think about how you can alter your strategy so that another trade won’t end up the same way and help you become a better trader overall while preventing future losses.
Traders need to realise when it is time to take a break from trading. That doesn’t mean quitting, but merely taking some time away from the screen. Go for a walk or engage in other activities that will lift your spirits and make you feel happy again. You can return refreshed and ready to give 100% again instead of less because you are discouraged by previous losses.
Increase Your Percentage of Winning Trades
Think about all the things that have gone wrong as well as those that have gone right. By making a conscious effort to pay attention to your wins and losses, you will be able to put things into perspective and remind yourself of how strong a trader you are. This realisation, along with others listed here, will allow you to control your fear and anxiety so that it does not cause emotions detrimental to success in CFD trading.
Analyse the Market and Your Past Decisions
When actively trading CFD’s, it is easy to get tunnel vision and focus on this particular trade. However, if you take some time away from the screen and do some analysis, you will be able to step back for a moment and look at your portfolio as a whole. This will allow you to see any patterns that have emerged in your trading strategy or ways that it could improve. It may also help to remember that every successful trader has lost money before, but they could recover thanks to knowledge gained during this process.
Educate Yourself About Trading
It is never too late for someone who wants to become a better trader. Reading books, blogs, or talking to other people in the industry who are experienced can be highly beneficial for traders because they provide knowledge. You can check here for more information on CFD trading. This knowledge is valuable when dealing with emotions because you can learn what triggers other people to feel specific ways and apply these concepts to your trading.
Analyse Your Emotions
Once you have experience with CFD trading, you will start to notice specific patterns in yourself. For example, if you notice that your feelings of greed or fear typically occur just before a loss, then that is something that needs to be monitored closely. Many online sites allow you to track how you feel regarding different factors such as time, price, volume, etc. It may also help to keep a diary of your trading day so that you can look back and see if any patterns emerge. When you notice specific triggers for emotion, like greed or fear, you can take steps to counteract these feelings.