Day Trading Strategies: A Guide for Beginners to Start Day Trading. Learn All the Most Effective Strategies to Invest Money and Make Profit Online, Including a Focus on Risk Management by Eduard Smith

Day Trading Strategies: A Guide for Beginners to Start Day Trading. Learn All the Most Effective Strategies to Invest Money and Make Profit Online, Including a Focus on Risk Management by Eduard Smith

Chapter 1: Challenges and Rewards
We associate trading psychology to some behaviors and emotions that are
often the triggers for catalysts for decisions. The most common feelings that
every trader will come across are fear and greed.

Fear
At any given time, fear represents one of the worst kinds of emotions that
you can have. Check-in your newspaper one day, and you read about a steep
selloff, and the following thing is trying to rack your brain about what to do
next even if it isn’t the right action at that time.   
Many investors think that they know what will happen in the following few
days, which makes them have a lot of confidence in the outcome of the
trade. This leads to investors getting into the trade at a level that is too high
or too low, which in turn makes them react emotionally.   
As the trader puts a lot of hope on the single trade, the level of fear tends to
increase, and hesitation and caution kick in.    
Fear is part of every trader, but skilled traders must be able to manage fear.
There are various types of fears that you will experience, let us look at a
few of them:   
The Fear to Lose
Have you ever entered a trade and all you could think about is losing? The
fear of losing makes it hard for you to execute the perfect strategy or enter
or exit a strategy at the right time.    
As a trader, you know that you need to make timely decisions when the
strategy signals you to take one. When you let the fear guide you, the level
of confidence drops, and you cannot execute the strategy the right way, at
the right time. When a strategy fails, you lose trust in your skills as well as
strategy.   
When you lose trust in many of the strategies, you end up with analysis
paralysis, whereby you cannot pull the trigger on any decision that you
make. Making a move becomes a considerable challenge.   
When you cannot pull the trigger, all you can think about is staying away
from the pain of losing, while you need to move towards gains.   
No trader likes to lose, but it is a fact that even the best traders will make
losses once in a while. The key is for them to make more profitable trades
that allow them to stay in the game.   
When you worry too much, you end up being distracted from your
execution process, and instead, you focus on the results. 

Day Trading Strategies: A Guide for Beginners to Start Day Trading. Learn All the Most Effective Strategies to Invest Money and Make Profit Online, Including a Focus on Risk Management by Eduard Smith