🟢 How to Use Trading Psychology to Become a Better Trader Continued

🟢Learn from mistakes

Everyone makes mistakes when trading. Instead of getting angry at yourself or worse, trying to recoup your losses with even more capital, go back and analyze what went wrong. Implement new strategies based on what you learn from previous mistakes and you’ll be more prepared the next time. 

🟢Set rules  

Create a detailed trading plan and stick to it. This plan will outline how you approach different situations and will help keep your reactions under control during times of stress. Some examples include using stop-losses and take-profits, limiting how much money you can gain or lose in one day, and a risk management strategy with which you’re comfortable. 

With a clear plan in mind, you’ll know exactly what steps need to be taken without allowing an emotional response to derail your decisions, ensuring you don’t stray from the initial plan you set out for yourself before entering a position. 

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