Today I would like to share with you ⚡Trader's psychological stages in the market⚡
💥OPTIMISM. It all starts with a positive outlook on the market situation, which leads the trader to open a deal. Trader in anticipation of future success.
💥EXCITATION. The market begins to move in the predicted direction. The trader anticipates events and hopes that success is ensured.
💥TREMBLING. The market continues to move in the direction the trader needs, this is a moment of joyful fading. At this stage, the trader is fully confident in his trading system.
💥EUPHORIA. Point of maximum financial risk. Investments turn into quick and easy returns. Trader completely ignores risk.
💥ANXIETY. Oh no, the market is turning around! The first signs of movement appear not in favor of the trader. But he does not notice this and believes that the market will recover and the trend will continue.
💥NEGATION. The expected market recovery did not happen. The trader does not accept what is happening and remains in position.
💥FEAR. Reality dictates its own rules, and the trader begins to realize that he is not as smart as he previously thought. Instead of confidence in success, thoughts begin to get confused.
💥HOPELESSNESS. At this point, all profits are lost. The trader had a chance to take profits, but he missed it. Not knowing how to proceed further, he is trying to do everything to return at least to the breakeven point.
💥PANIC. The most emotional period. At this stage, the trader feels his ignorance and helplessness and is wholly in the grip of the market. The mind is paralyzed, which sometimes leads to meaningless actions in the market.
💥CAPITULATION. The trader has reached the limit of patience and closes the position so as not to increase losses anymore.
💥DISAPPOINTED. After exiting the market, the trader no longer has the slightest desire to enter into transactions.
💥DEPRESSION. The trader begins to blame himself for the stupidity of why he did not close the deal on time. Some choose the right path and begin to analyze what went wrong. Real traders are born precisely at this stage, studying past mistakes and drawing conclusions.
💥HOPE. “I can still do it!” In the end, the trader returns to the realization that there really are cycles in the market. He begins to analyze new opportunities.
💥FAITH. At this stage, the trader restores faith in his future in the market and starts trading again.
The stages considered by us well demonstrate how psychology influences trading. 80% of success in the market directly depends on the correct psychological state of the trader.
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