2. Trading psychology.
Investopedia explains Trading psychology as the emotions and mental state that help to dictate success or failure in trading securities. It’s the mindset of the trader, and it can be as important as knowledge and skill in determining trading success.
- Are you the type that wants to gain 1000% on every trade?
- Do you put all your money on a single trade?
- Do you follow others trading signals blindly?
If you answer YES, then you need to change your trading mindset, strategy and plan.
The 10% successful traders build their portfolio slowly, therefore, they are not looking for 1000% gains. They don’t invest all the money in their portfolio on a single trade i.e. they divide across trades.
They’re active investor and passive trader. Also, they learn one market very well before switching to others etc.