Why Psychology and Risk Management are important for traders ???
Psychology is very important in the stock market. We keep making mistakes due to our emotions. Trading depends on our mental status and emotion. Mind does matter in money making.
Therefore, experts believe that psychology should be very good to be mentally and emotionally strong. If you are psychologically strong and risk management is also good, then you will be a successful trader. You will be able to maintain a discipline in stock market trading.
THE REASON OF WEAK PSYCHOLOGY
(1) Want to earn quick money
(2) Have no trading plan
(3) No risk management
(4) Have big liabilities
HOW WILL YOU HAVE A GOOD PSYCHOLOGY?
(1) Understand and believe there is no shortcuts
(2) Have a good trading plan
(3) Only trade what you well understand
(4) Good risk management
(5) Full attention on News Events
(6) Always maintain a discipline
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