#TradingPsychology #TradingPsychology

Trading psychology is a critical factor and has a huge impact on the efficiency of trades and strategies. Despite the widespread misconception, the best traders are not those who have studied all the books and indicators; they owe their success to emotional control more than experience.

Trading psychology is a mix of the trader's reactions to events that occur in the market, and this reflects the nature of the trader's decisions. Traders can react differently to the same event. For example, if stock prices drop sharply, some may panic and hastily sell their assets, while others prefer to buy stocks at a low price, asserting that the stock's value will rebound and that buying it will be justified.

The following psychological traits of traders:

Impulsive, like traders who tend not to be patient or think about their trading strategy for long. They open positions in the moment, without thinking too much about the consequences. Any change in the market is a signal for them to take a position immediately. These traders are the most affected by emotions and often make reckless trades.

Cautious, this is the exact opposite of the previous type,

Practical, these traders have succeeded in combining the qualities of the previous two types.