Business Daily Media

Business Marketing

Take control of emotions: an Octa guide to trading psychology

Learn about the five most common emotions associated with trading in the financial markets and how to overcome them.

KUALA LUMPUR, MALAYSIA - Media OutReach Newswire - 28 February 2024 - Trading psychology is an essential aspect of trading that many traders often overlook.

The ability to control emotions and make rational decisions is crucial to success in the financial markets. In this article, we will discuss some of the common emotions that traders experience and provide tips on how to overcome them.

Octa


1. Fear
Fear is one of the most common emotions that traders experience. Fear can cause traders to panic and make irrational decisions, such as closing a trade too early or not opening it at all.

Sometimes, traders experience FOMO (fear of missing out) when they feel they are failing to earn on a particular market movement while everybody else does. Some such trading trends are often promoted by financial influencers on social media. However strong they may seem, it is better to avoid placing orders on rumours and first carry out a thorough analysis using your preferred tools and indicators.

A tip from Octa experts: to overcome fear, please focus on the trading plan and stick to its rules. The use of risk management techniques is recommended, such as Stop-Loss orders, to limit potential losses.

2. Greed
Greed is another emotion that can be detrimental to trading. It can lead to overconfidence and excessive risk-taking, which can result in significant losses. Greed often leads to keeping the orders open for too long and ultimately to losing what you otherwise could earn confidently. This could backfire even more if staying in the trade even after it has gone loss-making, expecting—or rather hoping for—a trend reversal.

A tip from Octa experts: to overcome greed, focus on long-term goals and avoid getting caught up in short-term gains. Use risk management strategy in place that includes taking profits at predetermined levels.

3. Frustration
Frustration is a common emotion that traders experience when they are not seeing the results they expect. It can lead to impulsive decision-making and cause you to deviate from your trading plan.

There are many reasons for this feeling in the trading arena. For instance, looking for good entry points for orders based on past price movements can be frustrating since past performance does not guarantee future results. As a consequence, you get to the point when you think that no strategy whatsoever works.

A tip from Octa experts: to overcome frustration, focus on the process rather than the outcome, making sure the strategy works as intended and adjusting it when necessary in real time. Using a demo account might also help, as it does not risk real funds while getting all the experience.

Also, it is more likely to make mistakes if feeling stressed or tired. Take a break if there are a series of consecutive losing orders. Get some rest from the emotional pressure and carefully analyse what happened.

4. Overconfidence
Overconfidence is another emotion that can negatively impact your trading, especially if you pair it with reliance on gut feeling and intuition. This is never a good way of conducting trading activities. As lucky as one might be, after a few winning trades, there will inevitably be a streak of losing ones, wiping away all profits and possibly resulting in greater losses.

Being overconfident about the trading strategy is not conductive to it producing better results either. Remember that no strategy is perfect, and always be ready to adjust it. Flexibility is one of the key qualities a trader wants to have in order to keep pace with the fast-paced financial markets.

A tip from Octa experts: keeping a trading journal can help to see the whole picture more clearly, thus enable to analyse the trading performance and identify areas for improvement. Keep track of your trades, including entry and exit points, the reason for the trade, and its outcome.

5. Anxiety
Anxiety is a common emotion that traders experience when they are uncertain about the outcome of a trade. It can lead to overthinking and indecision, which can result in missed opportunities or an inability to exit a trade on time. Anxiously seeking proof that you are right and staying in a trade for too long could result in a costly mistake.
A tip from Octa experts: let your strategy do all the work after you have entered the trade. Ideally, it should include entry and exit levels for your trade, as well as risk management techniques that help you protect your capital. So, stay objective and abide by the already defined rules.

In conclusion, trading psychology is a critical aspect of trading that should not be overlooked. Traders should be aware of the common emotions that they may experience and have strategies in place to overcome them. By focusing on their trading plan, keeping a journal, having a risk management strategy in place, and avoiding emotional decision-making, you can increase your chances of success in the financial markets.

In conclusion, trading psychology is a critical aspect of trading that should not be overlooked. Traders should be aware of the common emotions that they may experience and have strategies in place to overcome them. By focusing on their trading plan, keeping a journal, having a risk management strategy in place, and avoiding emotional decision-making, you can increase your chances of success in the financial markets.

Hashtag: #Octa #trading

The issuer is solely responsible for the content of this announcement.

Octa

is an international broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and various services already utilised by clients from 180 countries who have opened more than 42 million trading accounts. Free educational webinars, articles, and analytical tools they provide help clients reach their investment goals.

The company is involved in a comprehensive network of charitable and humanitarian initiatives, including the improvement of educational infrastructure and short-notice relief projects supporting local communities.

In the APAC region, Octa received the ‘Best Forex Broker Malaysia 2022’ and the ‘Most Reliable Broker Asia 2023’ awards from Global Banking and Finance Review and International Global Forex Awards, respectively.

News from Asia

"Hong Kong Engineers Week 2024" concluded in success

Diverse and vibrant activities showcased the value of engineering profession Nurturing the young generation to inherit the responsibility of urban development HONG KONG SAR - Media OutReach News...

DHL Express unveils its HK$1.5 billion fully automated, eco-friendly-service center in Hong Kong

The service center sees over 90 percent increase in facility space and is equipped with a fully automated sorting system to support the growing demands of air trade and international expres...

Kerry eCommerce, Menzies Aviation and Menzies Macau Airport Services Limited Sign MOU on Global Customs Clearance

HONG KONG SAR - Media OutReach Newswire - 9 April 2024 - Kerry Logistics Network Limited ('Kerry Logistics Network', 'KLN'; Stock Code 0636.HK), through its subsidiary Kerry eCommerce Limited ('Ke...

AS Watson Appoints Malina Ngai as Group CEO

HONG KONG SAR - Media OutReach Newswire - 9 April 2024 - AS Watson is pleased to announce the promotion of Malina Ngai to Group CEO, effective from 1st May 2024...

Anastasia Nyrkovskaya Named Chief Executive Officer of Fortune Media

First female CEO of the storied 95-year-old business media brand Led transformation of Fortune into profitable, digital-first, and global multi-platform media company Fortune deploying regional c...

The Bank of Thailand reaffirms its adherence to integrity and principles to build confidence - good governance in Thailand

BANGKOK, THAILAND - Media OutReach Newswire - 10 April 2024 - In a detailed discussion with the Integrity Team of the Office of the National Anti-Corruption Commission (NACC), Thailand in recent d...

EdCity Supports Hong Kong Reading for All Day with the Introduction of Free eBook Week to Promote Reading

HONG KONG SAR - Media OutReach Newswire - 10 April 2024 - Opening a book can unleash infinite possibilities. Hong Kong Education City (EdCity) is committed to promoting a reading culture, immersin...

Hong Kong developer LOFTER Group achieved remarkable sales results after the government axed all property cooling measures

HONG KONG SAR - Media OutReach Newswire - 10 April 2024 - LOFTER Group (the Developer) has achieved remarkable sales results in its latest real estate development, Elize PARK. The Developer has wi...

Citibank Introduces Market-First "Emergency e-Banking Service Lock"

Fortifying Account Security with Option to Disable Access to Transaction Services Via Citi Mobile® App HONG KONG SAR - Media OutReach Newswire - 10 April 2024 - Citibank announced today the immine...

The First Thai Super Star Solo Concert "BILLKIN TEMPO TOUR 2024" Held Successfully in Galaxy Arena

Macau's newest and largest indoor arena becoming the hottest spot for international superstars, attracting music buffs from Thailand and across the globe with impressive lineup of performances MACA...

Popular

4 Qualities You Must Look For Before Hiring An Accountant

The accounting department of any organisation is a crucial one. It often shows if your operations are running smoothly or not in terms of your financial resources. The importance of accounting means there’s a need to have the ...

How to give your finances a mid-year check up

So winter is here, and we are halfway through the year already. If you are anything like me, you are wondering how it all flew by so fast. Life today is so busy, it can be hard to keep track of our long-term goals, when we get c...

How to master your shipping and fulfilment processes to win gold this peak season

Usually lasting from October to January, the peak season is always a long-distance sprint for eCommerce retailers. The 2021 peak season could be the biggest one yet, with online sales expected to overtake physical retail thank...

Virtual Office
Tomorrow Business Growth