Traders often have to think fast and make quick decisions, darting in and out of stocks on short notice. Overconfident investors believe they have more control over their investments than they truly do. Since investing involves complex forecasts of the future, overconfident investors may overestimate their abilities to identify successful investments. There are plenty of studies stating the relationships between trading and emotions or psychology in general, but most of them focus on equity trading or stocks trading. However, few are focusing on stocks and forex trading psychology.
The emerging field of behavioral finance aims to shed light on true financial behavior. However, if you look closely you will find that the most reliable person to consult on matters of trading psychology would be an expert in the same field. One such man is Anmol Singh, a leading expert in the trading psychology space, having helped thousands of traders all over the world dealing with psychological and behavioral issues that arise when high stakes are on the line. He also teaches various strategies and techniques that suit the majority of aspiring traders, educating them on intra-day trading, swing trading, core trading and even options trading as well.
The starting point for addressing psychological problems in trading is making sure that the methods you are utilizing really do provide you with a positive expected value. Anmol’s team prides themselves in being upfront and honest with their traders. Whether it means a $1,000 winning day or a $1,000 losing day, Anmol wants his students to see how trades are executed and how to handle the many different scenarios that the stock market can throw at them. Through dedication, education, and persistence, he has established a cure for the many psychological problems traders face.
Dealing With Overreaction
When a trader gets bad news about a certain stock, they might overreact and feel compelled to liquidate their holdings and sit on their money, staying away from taking any more risks. If they choose to do this, they will avoid certain losses but may also miss out on major gains. So, it is important for traders to understand what fear really is. According to Anmol, fear is just a natural reaction to a perceived threat. He has helped hundreds of thousands of traders from all over the world deal with psychological and Behavioural issues to come back to their best selves. He has been able to achieve all that through Live Traders, a trading firm he co-founded with Jared Wesley in 2015. Singh is the CEO and has led the firm to become the #1 Trading Education Firm for three consecutive years.
Resist the Urge To Be Greedy
Have you ever heard of the saying on Wall Street that “pigs get slaughtered?” Unfortunately, it is true. If you become greedy in trading, you will likely lose everything. While greed is not easy to overcome Anmol advises young traders to know their limits. Investing acts on our instinct to do better, to get just a little more. That is why you should be careful and learn how to recognize the greedy instinct. After you have mastered that, develop a trading plan based on rational thinking. Never rely on whims or guts.
For those who are looking for a place that is open and honest about how to become a successful trader, then look no further than Livetraders.com. The platform offers a live session where Anmol, along with his partners, and students trade live. Some traders who got their training from Live Traders have been able to earn up to $3,000 a week. No background or previous experience is required to join. What you need is just an open mind and willingness to learn and basic understanding of market cycles. That is how Anmol and his students continue to generate market-beating returns, often making the hedge fund and mutual fund returns look like they don’t pay anything.