Things that influence our trading decisions

[MFahad]

Good day everyone, let's talk about the factors in our Trading decision in terms of psychology. There are many things that affect our decision-making, and that's why sometimes we don't know why we make that decision. Sometimes we are repeating the same mistake over and over. Let's find out the common triggers that happen in our brain that make our judgment poor in trading.

* Emotions in trading

Our emotions are part of our human behavior and it has a profound impact on our trading decisions. In the context of trading, the two primary emotions that affect our decision-making are "FEAR and GREED" Fear is a powerful emotion that will push us to think twice about entering and exiting the trade. Sometimes because of our fear of the trade, we exit immediately even though we know that it is too early to do so. And when fear dominates we become overly cautious, which also causes us to miss the opportunity for profitable trade even though we have seen the high probability set-up we should enter a trade but we don't because of fear.

It's the same when we enter a trade, we immediately exit because our immediate thought is that we might still lose. This is also due to fear, Now if we are Greedy it also has an effect on our decision-making. Because this will push us to take excessive risk because we want a higher return. So, because of greed, we will increase the leverage that the position size is too big, the type that can only gain a lot, we will trade 100% capital in just one trade. It will also cause impulsive action, and we will also be tempted into speculative trades without proper risk management.

There are numerous factors which effects our success rate but foremost among these are emotions and if we don't know how to control our emotions then we will not get our desire aim. I think those who don't have the understanding about market Fluctuations, don't know that it will recover back and don't know that ups and downs both are essential for success can never make profit.

Greediness comes when you are not happy with your profit and desires for more than this. Actually one will never days that their desires become completed because everyone wishes to be more successful than this so I think that one should be happy with his present and don't involved in greediness.

[freedomgo]

The biggest issues and why most traders never make it in this business is basically greed and fear.

You enter a good trade, you are in profit but you don’t get out due to greed. Then the trade goes against you and as soon as you are break even you close it and it eventually starts to go your way. But you already closed the trade due to fear.

This is why many blow up their accounts everyday. If it wasn’t for this emotion of extreme greed and fear then trading would be as difficult as it is.

we can't totally discard such emotions because we are only humans. and that is human nature. but a person of course can contain these emotions. but he should have good tactics on how to control such feelings so as not to drag himself on going down.
and for me, one of the major factors that can influence my trading decision is the availability of funds, and to what extent i can use such funds. trading knowledge can be learned and once you have enough money, you can actually start learning those tricks.

I would also agree to that as you can never start trading without sufficient amount of funds to use as your capital. In addition, experience also matters the most. You will often resort into wrong decision making if you keep on trading without some significant experiences that will guide you. Trading needs more knowledge and skills, that’s why it needs a long term preparation before you decide to engage in live trading.

[Natalim]

Based on my experience, the things that influence me in making my decision are my emotions and Technical knowledge. It is something to note that the more we become too emotional, the more we can't think the right thing and it leads to making wrong decisions. It is very common when we are newbies but as we gain experience, it gradually changes and now we are focused on following the trend, doing TA, and improving our skills and strategies. Because when we are a newbie, we feel worried that is why we become too emotional.

[Johnyz]

Based on my experience, the things that influence me in making my decision are my emotions and Technical knowledge. It is something to note that the more we become too emotional, the more we can't think the right thing and it leads to making wrong decisions. It is very common when we are newbies but as we gain experience, it gradually changes and now we are focused on following the trend, doing TA, and improving our skills and strategies. Because when we are a newbie, we feel worried that is why we become too emotional.

Emotions and the news are the top contributor on making decisions and in trading even if you practice not to get very emotional while trading you can’t still escape the fact that you’re still affected especially if greed is taking over your trading decisions. News are common as well, as a trader you should only not focus about the price trend, but also see the market trend because in crypto, the market can easily go pump and dump on every news.

[Quidat]

Based on my experience, the things that influence me in making my decision are my emotions and Technical knowledge. It is something to note that the more we become too emotional, the more we can't think the right thing and it leads to making wrong decisions. It is very common when we are newbies but as we gain experience, it gradually changes and now we are focused on following the trend, doing TA, and improving our skills and strategies. Because when we are a newbie, we feel worried that is why we become too emotional.

Emotions and the news are the top contributor on making decisions and in trading even if you practice not to get very emotional while trading you can’t still escape the fact that you’re still affected especially if greed is taking over your trading decisions. News are common as well, as a trader you should only not focus about the price trend, but also see the market trend because in crypto, the market can easily go pump and dump on every news.

Majority of us would really be definitely agreeing on this one on which emotions and news are the main things that could affect us out with our trading plans and decisions that we had molded up earlier.
This is why i could really say that its definitely true on this part and this is always the case. Despite on having that sufficient knowledge and experience in the market but still i do really get affected
with these kind of moments on which its not something that you could avoid because you would really be molding on lots of "what ifs" in your mind on which it would really be a common question
that you would be having in mind on the time that the market would really be having those sentiments around.It would really be stirring up your mind and emotion on which on the time
that you havent finalized yet your plans or even it is, but still have the chance for it to be changed.

[jeraldskie11]

Based on my experience, the things that influence me in making my decision are my emotions and Technical knowledge. It is something to note that the more we become too emotional, the more we can't think the right thing and it leads to making wrong decisions. It is very common when we are newbies but as we gain experience, it gradually changes and now we are focused on following the trend, doing TA, and improving our skills and strategies. Because when we are a newbie, we feel worried that is why we become too emotional.

Emotions and the news are the top contributor on making decisions and in trading even if you practice not to get very emotional while trading you can’t still escape the fact that you’re still affected especially if greed is taking over your trading decisions. News are common as well, as a trader you should only not focus about the price trend, but also see the market trend because in crypto, the market can easily go pump and dump on every news.

Every time we trade, regardless of how hard we try, there is an involved emotion since we put money into it. Whatever occurs, we must trade in accordance with our strategy. However, due to previous losses, we can become emotional, which complicates our trading. This is a hurdle to our trading strategy, and if we are not conscious, we will become victims of our own emotions. As you stated, greed is a result of emotion, most notably consistent losses. To be good traders, we must understand how to manage our emotions.

[DoublerHunter]

~snip~
However, due to previous losses, we can become emotional, which complicates our trading. This is a hurdle to our trading strategy, and if we are not conscious, we will become victims of our own emotions. As you stated, greed is a result of emotion, most notably consistent losses. To be good traders, we must understand how to manage our emotions.

^This is definitely right and I agree with this.
Being successful traders means having a deep understanding of how to control our emotions rather than letting them control us. By developing emotional discipline and staying committed to our trading plan, we can overcome the negative impact of emotions and have successful trading decisions. Remember, managing emotions is an ongoing process that requires self-awareness and practice. Through discipline, self-reflection, and continuous learning, we can strive to become better traders and improve our overall trading performance.

[South Park]

~snip~
However, due to previous losses, we can become emotional, which complicates our trading. This is a hurdle to our trading strategy, and if we are not conscious, we will become victims of our own emotions. As you stated, greed is a result of emotion, most notably consistent losses. To be good traders, we must understand how to manage our emotions.

^This is definitely right and I agree with this.
Being successful traders means having a deep understanding of how to control our emotions rather than letting them control us. By developing emotional discipline and staying committed to our trading plan, we can overcome the negative impact of emotions and have successful trading decisions. Remember, managing emotions is an ongoing process that requires self-awareness and practice. Through discipline, self-reflection, and continuous learning, we can strive to become better traders and improve our overall trading performance.

Many people out there which want to become traders have the mistaken idea that if they want to become traders then they need to master all kind of different indicators and become a master of TA, and while that will help without a doubt, it also very important that people develop some emotional intelligence when they trade, as it is on those critical moments when everything hangs in the balance when the most important outcomes are decided, and if you are an expert on reading charts but you have a low emotional intelligence then you will make a mistake from which it will be almost impossible to recover.

[Maslate]

Based on my experience, the things that influence me in making my decision are my emotions and Technical knowledge. It is something to note that the more we become too emotional, the more we can't think the right thing and it leads to making wrong decisions. It is very common when we are newbies but as we gain experience, it gradually changes and now we are focused on following the trend, doing TA, and improving our skills and strategies. Because when we are a newbie, we feel worried that is why we become too emotional.

I believe not only newbies are battling their own emotions when trading, but even professional traders still feel the same way but with their high experience and honed skills, they can somehow start to manage their emotions and control them everytime they trade. Furthermore, trading using borrowed money is also a big factor that will turn your trades into losses. If you don’t have your own hard-earned money that you are willing to lose, then it’s better to delay trading and just save first or have an additional job that will provide an income that you are going to finance when trading.

[Japinat]

Almost everything influences the trading process. And in fact - to make a decision is not an easy task. So, it is only at first glance that everything is simple, accessible and understandable.

If you become mentally strong, then many of the issues mentioned in the op can easily be solved. You need to be determined completely and should not lose focus from your goal or daily limit. Making a decision was always hard, as several factors affect here. You need to analyse the risk, estimate the outcomes and predict the direction before investing in any coin. If a person excels in everything I mentioned previously then definitely he can reduce the risk and can completely change his profits or basically increases it.

Trading has a lot of factors to deal with before you can finally say that you’re a good trader. And there will always be inevitable losses no matter how good you are in trading. However, everything can be learned and even mastered but those process will certainly take a lot of time before they set in. That’s the reason why trading demands continuous learning from your mistakes and losses, and also from your achievements and profits as they will create an impact to the whole being of a trader. In the end, trading is hard and even risky, but you can always chose to make it easier by following the basics in trading and of course, trade with confidence and faith because that will also attract positive trading results.

[jeraldskie11]

~snip~
However, due to previous losses, we can become emotional, which complicates our trading. This is a hurdle to our trading strategy, and if we are not conscious, we will become victims of our own emotions. As you stated, greed is a result of emotion, most notably consistent losses. To be good traders, we must understand how to manage our emotions.

^This is definitely right and I agree with this.
Being successful traders means having a deep understanding of how to control our emotions rather than letting them control us. By developing emotional discipline and staying committed to our trading plan, we can overcome the negative impact of emotions and have successful trading decisions. Remember, managing emotions is an ongoing process that requires self-awareness and practice. Through discipline, self-reflection, and continuous learning, we can strive to become better traders and improve our overall trading performance.

Many people out there which want to become traders have the mistaken idea that if they want to become traders then they need to master all kind of different indicators and become a master of TA, and while that will help without a doubt, it also very important that people develop some emotional intelligence when they trade, as it is on those critical moments when everything hangs in the balance when the most important outcomes are decided, and if you are an expert on reading charts but you have a low emotional intelligence then you will make a mistake from which it will be almost impossible to recover.

That's what I thought before that you have to learn all the indicators to become a profitable trader. I learned many indicators but instead of making it easy for me to trade, it complicates my trades. If you're going to use an indicator to determine the trend, you can either choose moving averages or Bollinger bands, no need to use both of them in the chart because it's useless.
And yes, emotional stability in trading is very important to be successful and that's why some people says that it's 90% psychology and 10% TA.

[sompitonov]

~snip~
However, due to previous losses, we can become emotional, which complicates our trading. This is a hurdle to our trading strategy, and if we are not conscious, we will become victims of our own emotions. As you stated, greed is a result of emotion, most notably consistent losses. To be good traders, we must understand how to manage our emotions.

^This is definitely right and I agree with this.
Being successful traders means having a deep understanding of how to control our emotions rather than letting them control us. By developing emotional discipline and staying committed to our trading plan, we can overcome the negative impact of emotions and have successful trading decisions. Remember, managing emotions is an ongoing process that requires self-awareness and practice. Through discipline, self-reflection, and continuous learning, we can strive to become better traders and improve our overall trading performance.

Many people out there which want to become traders have the mistaken idea that if they want to become traders then they need to master all kind of different indicators and become a master of TA, and while that will help without a doubt, it also very important that people develop some emotional intelligence when they trade, as it is on those critical moments when everything hangs in the balance when the most important outcomes are decided, and if you are an expert on reading charts but you have a low emotional intelligence then you will make a mistake from which it will be almost impossible to recover.

That's what I thought before that you have to learn all the indicators to become a profitable trader. I learned many indicators but instead of making it easy for me to trade, it complicates my trades. If you're going to use an indicator to determine the trend, you can either choose moving averages or Bollinger bands, no need to use both of them in the chart because it's useless.
And yes, emotional stability in trading is very important to be successful and that's why some people says that it's 90% psychology and 10% TA.

I tried TA for several years, but it didn't show its effectiveness. So I don't use moving averages and other TA tools. I am an adherent of fundamental analysis.

Psychology really has a huge impact on trading. There are even special psychologists for traders if you want to improve your morale. But you need to be very careful when choosing them. This is a favorable area for many scammers who pretend to be a real psychologist, so you need to choose very carefully.

[danherbias07]

I like this. Thank you.
Some of them put an arrow in my heart accurately as I reminisce all the mistakes I did back when I was starting. Emotional issues had always been a problem when it comes to trading. A trader should have a cold heart, he cannot fall in love with the coin that he is trying to reap money from.
ICO times, I bought coins that I usually trade because of the sudden swings in the market where stablecoins are not yet trending. I bought this one coin from a project because I thought I could use it to play with its market and make a profit from it. Sadly, I ended up joining their Telegram group and I had the hardest time of letting it go because of all the optimistic investors feeding everyone with good news.
It ruined the plan and it was dumped by whales so there's no ROI too. Whatever coin we are trying to buy, let's just join their groups for informative reasons and not become a hardcore fan. It will definitely affect our decision if we stick there and read the statement of other investors who wants it to be pumped.

[Kimonoe]

I like this. Thank you.
Some of them put an arrow in my heart accurately as I reminisce all the mistakes I did back when I was starting. Emotional issues had always been a problem when it comes to trading. A trader should have a cold heart, he cannot fall in love with the coin that he is trying to reap money from.
ICO times, I bought coins that I usually trade because of the sudden swings in the market where stablecoins are not yet trending. I bought this one coin from a project because I thought I could use it to play with its market and make a profit from it. Sadly, I ended up joining their Telegram group and I had the hardest time of letting it go because of all the optimistic investors feeding everyone with good news.
It ruined the plan and it was dumped by whales so there's no ROI too. Whatever coin we are trying to buy, let's just join their groups for informative reasons and not become a hardcore fan. It will definitely affect our decision if we stick there and read the statement of other investors who wants it to be pumped.

I put so much hope during the ICO trend, many altcoins seemed promising, but ended in disappointment. from that I learned a very valuable lesson where personal analysis should be followed, not seduced by sweet words in the telegram group, until finally they just left, and the coins have turned to ashes. until now there is no bright spot, in fact it has been delisted from the available exchanges. large collection of owned but worthless tokens. and it seems that there is no hope anymore, because the project has stalled. but indeed not all of them were like that, I also had time to feel the sweetness of ICO, as if it was easy to make money at that time

[palle11]

Loss aversion

This looks like what every trader struggle with and that is because a trader is a human being with all the hormones that is responsible for making you feel bad when you are not happy and you will definitely not be happy when you lose especially if you are a consistent loser 

Seriously, we all try to chase after our loses sometimes but this is particularly from newbies because they don't understand why they should lose. Loss aversion occurs lesser with experienced traders, they chase when they see the need or they decide to allow it for the next opportunity but surely it is a strong factor that causes losses.

[ShowOff]

~snip~
However, due to previous losses, we can become emotional, which complicates our trading. This is a hurdle to our trading strategy, and if we are not conscious, we will become victims of our own emotions. As you stated, greed is a result of emotion, most notably consistent losses. To be good traders, we must understand how to manage our emotions.

^This is definitely right and I agree with this.
Being successful traders means having a deep understanding of how to control our emotions rather than letting them control us. By developing emotional discipline and staying committed to our trading plan, we can overcome the negative impact of emotions and have successful trading decisions. Remember, managing emotions is an ongoing process that requires self-awareness and practice. Through discipline, self-reflection, and continuous learning, we can strive to become better traders and improve our overall trading performance.

When a trader cannot control his emotions, the potential loss he will experience will be higher than a trader who is able to control his emotions. Good emotional control will allow a trader to trade according to plan, but still the return on trading is very dependent on market volatility, not only analysis.

Emotional control is also part of trading psychology. That is obviously very important for a trader as it will enable them to become successful traders later on. Experience and knowledge can support them, but as long as they are still afraid of losing, it is clear that controlling their emotions will be difficult.

[sompitonov]

~snip~
However, due to previous losses, we can become emotional, which complicates our trading. This is a hurdle to our trading strategy, and if we are not conscious, we will become victims of our own emotions. As you stated, greed is a result of emotion, most notably consistent losses. To be good traders, we must understand how to manage our emotions.

^This is definitely right and I agree with this.
Being successful traders means having a deep understanding of how to control our emotions rather than letting them control us. By developing emotional discipline and staying committed to our trading plan, we can overcome the negative impact of emotions and have successful trading decisions. Remember, managing emotions is an ongoing process that requires self-awareness and practice. Through discipline, self-reflection, and continuous learning, we can strive to become better traders and improve our overall trading performance.

When a trader cannot control his emotions, the potential loss he will experience will be higher than a trader who is able to control his emotions. Good emotional control will allow a trader to trade according to plan, but still the return on trading is very dependent on market volatility, not only analysis.

Emotional control is also part of trading psychology. That is obviously very important for a trader as it will enable them to become successful traders later on. Experience and knowledge can support them, but as long as they are still afraid of losing, it is clear that controlling their emotions will be difficult.

Trading is a struggle primarily against yourself. In my opinion, these are the best words that describe trading in one sentence. This expression reminded me a trader with 15 years of experience, whose podcast I recently listened to. Checking your nerves and fears of loss. The ability to remain cool during a long series of failures.

Also, something may happen in the market for the first time, which the market has not seen before and which is impossible to predict. I remember a case in 2020 when oil had a negative price value and many suffered losses on one exchange. Therefore, one should not rely only on what was in the past.

[omgitsmehehe]

That's what I thought before that you have to learn all the indicators to become a profitable trader. I learned many indicators but instead of making it easy for me to trade, it complicates my trades. If you're going to use an indicator to determine the trend, you can either choose moving averages or Bollinger bands, no need to use both of them in the chart because it's useless.
And yes, emotional stability in trading is very important to be successful and that's why some people says that it's 90% psychology and 10% TA.

We struggle to be the better version of ourselves, there's absolute high competition in the market, and it's our duty to remained fit for the challenges coming our way. Talking about trading indicators, it's more complicated as it seems, there's something about this crypto space. The more we learned and adapt to new strategies, that's an easy path to access steady losses. So to be on a more safer side, we should learn a particular strategy, repetitive practices on it until we master it. That's the only way we can start earning from the market.

[knowngunman]

Emotional control is also part of trading psychology. That is obviously very important for a trader as it will enable them to become successful traders later on. Experience and knowledge can support them, but as long as they are still afraid of losing, it is clear that controlling their emotions will be difficult.

As important as emotional control is when it comes to trading, majority of the traders can still not get rid of their emotion while trading. It's unarguable that emotion can not be utterly separate from human mind as long as there is respiration but it can be reasonable control only by a few percentage of traders. Lose and risk tolerance is the reason we think that some traders can control emotion but in actual sense it is the risk they're capable of tolerating.

Man by nature is greedy and by implication, there's no single trader who is not afraid of losing but what matter is what happen after the lose. If you can not maintain focus and allow the lose to destabilize your thoughts, then you are not ready for trading. After all, emotion remain the key factor that influence trading success and failure.

[jeraldskie11]

~snip~
However, due to previous losses, we can become emotional, which complicates our trading. This is a hurdle to our trading strategy, and if we are not conscious, we will become victims of our own emotions. As you stated, greed is a result of emotion, most notably consistent losses. To be good traders, we must understand how to manage our emotions.

^This is definitely right and I agree with this.
Being successful traders means having a deep understanding of how to control our emotions rather than letting them control us. By developing emotional discipline and staying committed to our trading plan, we can overcome the negative impact of emotions and have successful trading decisions. Remember, managing emotions is an ongoing process that requires self-awareness and practice. Through discipline, self-reflection, and continuous learning, we can strive to become better traders and improve our overall trading performance.

Many people out there which want to become traders have the mistaken idea that if they want to become traders then they need to master all kind of different indicators and become a master of TA, and while that will help without a doubt, it also very important that people develop some emotional intelligence when they trade, as it is on those critical moments when everything hangs in the balance when the most important outcomes are decided, and if you are an expert on reading charts but you have a low emotional intelligence then you will make a mistake from which it will be almost impossible to recover.

That's what I thought before that you have to learn all the indicators to become a profitable trader. I learned many indicators but instead of making it easy for me to trade, it complicates my trades. If you're going to use an indicator to determine the trend, you can either choose moving averages or Bollinger bands, no need to use both of them in the chart because it's useless.
And yes, emotional stability in trading is very important to be successful and that's why some people says that it's 90% psychology and 10% TA.

I tried TA for several years, but it didn't show its effectiveness. So I don't use moving averages and other TA tools. I am an adherent of fundamental analysis.

Psychology really has a huge impact on trading. There are even special psychologists for traders if you want to improve your morale. But you need to be very careful when choosing them. This is a favorable area for many scammers who pretend to be a real psychologist, so you need to choose very carefully.

I heard someone like you who just trade fundamentally, but because you're not using TA you don't know where is the invalidation and where is the take profit area. In other words, you didn't put stop loss? And take profit when happy? If yes, you're likely using a spot trading because if you trade with leverage, it's so risky. Personally, I trade both TA and FA before but when I observed that the news mostly come when the price accumulate, I decided to focus more in TA.