Why is the trader his own enemy?
Because in trading there are only neutral factors; Although the market prices depend on the free play of supply and demand, and other traders influence this speculative game, the real thing you have to know is that the market does not want or do anything in order that nobody wins or lose, at least not in an intentional sense. Whether people win or lose is simply part of the nature of markets, but it is not something they do in an evil way.
Managing the own emotions
As I have mentioned in many other posts in the past, the trader must know how to manage his emotions when he operates, because not doing it plays against him and causes him to lose much more money than he wins, which in the end leading him to the bankruptcy. Not considering his own emotions and nor handling them appropriately makes the trader his own enemy.
The main emotions that traders must control
There are two, one is the feeling of euphoria that one has when he is winning in a trade, which makes the trader feel that he cannot lose under any circumstances. He feels invincible, he feels invulnerable, he believes that he cannot lose and does not take profit on time, and puffff, the operation is reversed and he realizes then that he could lose, and that he was not invincible or invulnerable, and because of that mismanagement he is now at a loss.
The other feeling is that of revenge; which is none other than when the trader loses during a trade, and then refuses to accept that he must cut the losses (for not admitting to himself that he was wrong in his analysis) and the losses become large. Or for example, when a trader loses in an operation with an asset, and then re-enters to operate it in order to recover what was lost, and even when everything shows him that he will not do it, he does not close the operation, because he is wanting to recover what he lost.
Why are revenge and euphoria useless in trading?
Because they prevent the trader from having an objective view of things, because he vitiates his ability to see reality, and because they therefore make him make mistakes and lose money.
The feeling of revenge, as well as the feeling of euphoria, only shows that the trader does not know how to handle his own emotions, and therefore, his operation will never be as successful as it would be if he did.
A trader who manages his emotions poorly will always be much less successful than a trader who knows how to perfectly manage his emotions. That is a fact!
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