How to choose your online trading platform

Online Trading: Trader Psychology

The term Trading comes from the English verb “to trade”, literally translated as “to trade”. Basically the Online Trading will be just this, that is to exchange goods for money using the convenience of the net.

Brokers

Brokers are the intermediaries that are exactly in the middle, as a link, contact between the individual investor, which may be either private or corporate, and the financial markets. In the current meaning, the Broker is nothing more than a company and can be an investment company or a bank, which will provide the customer with a platform or software, which the latter, or the Trader can use to implement his investment choices.

And there will be tools available to carry out analysis and studies, mainly in discipline we will talk about technical analysis, the most used in the world of Online Trading, and fundamental analysis, these two very often will be in conflict with each other.

The Psychology of the Trader

In doing Online Trading on the Stock Exchange, it will be almost impossible to predict all the drawbacks that may happen, there are no universally valid rules in all situations. It will be necessary, however, to have guidelines that will be of help in Trading. It will be able to try to follow certain rules that will not be of the simple theories, but of the true rules elaborated from analysts and Trader experts.

It is recommended, therefore, first of all to proceed from the simple to the complex, i.e. since you will choose a currency pair, such as Euro/Dollar will be recommended, then to study its history, and therefore the more you study it, the more profitable it will be. You will need to observe the charts and pay attention to trends and levels of support and resistance, and you will need to follow the evolution of prices close to the level.

It will be essential to identify known and unknown patterns of technical analysis, and carefully study the evolution of prices in these patterns. There will be a need to focus on charts and try to tune into the regularity of the market. Practicing in this way, with for example monthly, weekly, daily charts for a few hours, you will discover many useful rules.

What is Important for Success

The important thing will be to be the master of his own decisions, the Trader will be 100% responsible for his own results. A good Trader will develop his own trading plan and make individual decisions. Only by ignoring the opinions of the majority will you really understand if you are acting correctly or not, and if this will be the key to success in the market.

The loss will not be so painful if you understand your mistakes and commit yourself not to repeat them again. A Trader who learns from his mistakes and finds them useful, will be practically destined for success. In order to gain, priorities must be set. These will form your trading system, based on historical data and with positive results.

The system should not be complex, but flexible to permanent changes in the market. The more complex a system is in relation to its elements, the more vulnerable it will be. Its own system will be its own prerogative.

But the Key to Success is…

The key to success is discipline. Many Traders fail, even though they have their own trading system. The secret to a Trader’s success lies in self-discipline and competence that will allow him to follow the signals and stay alert at all times.

The important thing will be to stop losses at the right time, because it will be important to know when to recognize and stop a wrong position, but you are also aware how difficult it will be to accept a loss and close a trade with a negative result, because it will mean accepting your mistake. If you have made a mistake, you should simply close the position without trying to change things for the better. The fundamental thing will be to let the gains accumulate.

A professional Trader will never take a gain for another. The most important thing for the Trader will be to correctly predict the fluctuation of the exchange rate that will certainly lead him to a profit. If you have a profitable transaction in your hands, it is suggested that you only exit the exchange if the system suggests you do so, otherwise you can let the profit grow and then get the maximum result.

Build your own pyramid trading strategy correctly and if the market will move as you wish, you should not forget to increase your open position. The secret to build a pyramid will be that every new completed position will have to be lower than the previous one.

Trading will be a marathon that will last a lifetime. It is recommended to live trading as a serious thing, which will bring capital and satisfaction over the years. The beginner Trader who will try to triple the profits from the first transactions can be considered naive, because in order to make good profits you will need to have accumulated a lot of experience. Usually, beginners of this kind fail from the very first months of trading.

It is proposed to buy based on rumors, and sell based on news. You will not need to be influenced by the positive news that will have already been taken into account by professional traders in the market. Much more important, instead, will be the rumors that, once launched on the market, will raise prices in a few days, even before the real news.

When the real news appears, prices will continue to rise and then fall.

Emotions and Psychology in the Trader

The Traders have emotions and their own psychology. The graph of a currency is nothing but the expression of the opinions, hopes, desires, doubts of the Traders. To trade profitably, it is necessary to study human psychology and its influence on decisions.

You will need to analyze the price chart and try to capture the feelings and thoughts of the Traders and in doing so, you will not be part of the circle of lazy and incapable Traders, but you will be among the winning, bullish or bearish Traders.

Conclusions

You should reflect on your own motives. Before you start trading, it is advisable to ask yourself some questions, because a clear picture of your goals will lead you on the shortest path to achieving them.

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