Ambition is a trait shared by all traders. It takes a certain desire to succeed in order to become a trader. The problem with ambition is that it forces you to make the wrong decisions, for example, when you compare your results with the results of another trader and allow this to influence your trading.
Losses are the trader’s worst nightmare. Losses occur when transactions do not take their course. They are an inevitable part of trading, but they can be managed. To make them too large, always use the correct position size (1% or 2%). If the deal is against you, do not double it or change it. If you feel that you are upset by the series of losses, the best thing you can do for yourself is to leave the market.
Hope can make traders do bad things like fear or greed. Hope is good, but it can turn against you. It is one thing to enter the market, hoping that all your hard work will pay off. It is completely different from trade-in credit, hoping for luck. This is a gamble and the worst kind of trading, this is despair, and it is very bad for a trader.
Understanding your psychology is the way to success
Simply put, you must remove all emotions from your trading if you want to be truly successful. Successful in the long run. A successful way means that you can live outside the trade. To do this, you must have some rules, discipline that you need to follow, and the ability to get yourself out of the market when emotions overtake your decision-making process. A few words about algorithmic trading versus human trafficking. Algorithmic trading is the use of computers to perform trading tasks. Big-money algorithmic traders have billions bringing in hundreds, thousands, and even millions of transactions a day, as they try to scalp any profit they can, in anticipation of a big profit.
Small traders use expert advisors ( MT4 ) and other trading software to determine the entry and exit points. Algorithms are generally good, but you cannot rely on them blindly. Algorithms are rule-based and work only when market conditions comply with these rules. When market conditions change, algorithms cease to work, and losses can increase rapidly. In no case should a retail trader allow the algorithm to trade unattended. However, social trading networks allow you to tie your profits to professional disciplined traders. Using this service, you do not blindly rely on algorithms, but instead, you actually allow proven successful traders to make transactions on your behalf.