The psychological aspect of trading is extremely important. When it comes to trading, the general consensus is that we should be able to control our emotions in order to succeed. We shouldn’t be greedy, fearful, impatient or easily disappointed because we may not trade objectively. Therefore, the only thing that seems reasonable is to try hard in order to eliminate emotions.

Trading is like any other business where losses are a part of the game. But losing over and over again can lead to psychological scarring that can paralyze and fill the trader with dread when approaching the trading table. It is well known that fear of losing actually leads to losing. Stops are placed too tight instead of giving the price action room to breathe.