trading psychology Binomo

Revenge trading is not something unfamiliar to most traders. It is, however, something unwanted. It may easily lead to losses and everyone would rather win than lose. So what is it exactly and how to avoid it? Let's see to this topic today. What is revenge trading? Revenge trading happens when traders lose and then take the next move in emotions. Losing money causes suffering. Traders want to avoid this unpleasant feeling of fear, anger, shame and nervousness, so they wish to recover the loss by any means. They open the next position quickly without thinking a lot. But the results are often quite opposite. We are all prone to emotions. But they cloud our judgment, and so they are not good advisors in trading. Pushing the trades just because you are afraid of watching your capital diminishing or what others will say brings poor results. How not to take revenge on the market In order to work on consistent profits, you should be able to control your emotions. This also means avoiding revenge trading. The question is how to do it. I will share some tips with you that are developed by psychologists and trading coaches. Time for a break It is a natural reaction that you would like to recover fast. However difficult it might be for you to postpone it, this is the best you can do. Take your time and pause trading for a while. It will provide a required perspective. You will be able to focus on the trading charts better and thus, make a better and calm decision. Self-assessment Your break does not have to be unproductive. You can use this time well for self-assessment. It is really important to know yourself and what works well for you, what does not. Keeping a trading journal will be of great help here. You will be able to review your actions, how you felt at that time and find out how you can improve your trading. Market analysis It is important to get to know yourself and your preferences. But knowing the market is no less essential. Again, with your trading diary, you will be able to assess what the circumstances around your trades were, what the situation on the market was at the time. Always conduct proper market analysis before beginning a trading session. Strategy One more thing to estimate is your trading strategy. First, are you faithfully to it, or are you getting off track? Does it include all the necessary elements? What are the entry and exit criteria you have chosen? Make the evaluation and maybe you will come up with some components you can enhance. Time for a change There are some factors to analyse, yourself, market, strategy, but now it is time for a change! After proper research, you should get some answers and now you should work on them. Learn what is missing, adjust a strategy, implement necessary changes and begin trading with a new perspective. Summary Taking revenge on the market can occur to everyone. This, however, does not bring good results. The first step is to notice it and then you can start working on it. I have shared 5 pieces of advice on how to deal with revenge trading. Take a break, assess yourself, analyse the market and your strategy and finally, introduce changes and start again. Use the Binomo demo account where you can test a new strategy or the adjustments you have made in a risk-free environment. All the best!

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