#مفتاح Success in the financial markets is controlling our emotions and feelings. (Victor Sprando)
Definition of psychological trading
Psychological trading is known as studying all the psychological factors of the trader during this process, such as the emotional state, biases, behavior, and normal human feelings such as fear, confidence, greed, and others.
We understand from this definition that these factors influence all trading decisions, especially the emotional influence, biases, and behaviors that greatly interfere in making the decision to buy or sell and other trading elements.
The relationship between the mind and financial decisions
There is a relationship between your mind as an investor in trading and the financial decisions that can be made.
In this relationship, mental health plays a major role, especially with the pressures that may be caused by various market fluctuations and their relationship with anxiety, increased confidence, and others.
Therefore, there is an importance of mental health in making decisions in trading in terms of:
Controlling the different emotions of investors.
Mental health helps to have a mechanism for sound and correct thinking.
Mental health makes the investor more resilient and constantly in control of reactions or impulsive trading.
Investors' sense of risk, how to control it, feeling cautious and what results from that.
