XAUUSD Psychology: Emotions Fear and Greed

Greed

Most investors are not satisfied with 20 % - 40 % profit annually, what they want is double or triple their trading equity.

With the right trading strategy, the market can certainly be very profitable but greed is always a factor in any human endeavor, especially in investing. Greed in XAUUSD Trading leads to over trading. When an investor falls in to this trap, there's a greater potential to risk too much. Greed can cloud your judgment quicker than anything else. This is where self-discipline can help you maintain your focus and your profits, to maintain discipline traders require to use the right psychology principles.

XAUUSD Psychology Greed in Markets - XAUUSD Psychology

XAUUSD Psychology Fear and Greed - XAUUSD Psychology - XAUUSD Psychology Explained

Gold Trading psychology - teaches you how to fight your greed & set realistic goals. Greed is what makes most traders to lose. Profit is never enough. Everyone wants to earn more money. Well, some traders do succeed once or twice. That's called good luck. But short-term profits mean nothing. If you focus on good risk management in the long term you'll keep winning.

A good principle is, not to use more than 5% of the margin, & not to risk more than 2 % on any one single transaction.

Fear

Fear is another emotion in psychology that affects the markets. Poor practices, such as taking on too much trading risk with excessive number of trade transactions can magnify the normal stresses of the market place. The best way to combat fear is to learn and understand how emotions affect the markets & learn how to avoid these emotions when trading the market.

Identifying long term trends can improve results, identifying these trends can help you plan the best trading strategy so that you can maximize profits, while at the same time keeping emotion of fear at bay.

Sometimes, however, psychology problems have nothing to do with your strategy. They are the results of pre-existing problems that will not be solved by different strategies & methods. Your biggest enemy when trading is you. It is not the market or the brokers. It is you! If you don't have a professional xauusd trading mindset then you will make the wrong decisions & lose money on a consistent basis.

XAUUSD Trading psychology teaches courage. In Trading it takes a lot of courage, patience & experience to make huge profits.

Hope

Hope can cause traders to make mistakes when it comes to investment decisions, especially when it comes to staying with a losing position for too long. Exit points exist for a reason and losses should be kept to a minimum.

The market might be driven by emotions but it also can be predicted: because it has ALWAYS been driven by the same basic human emotions.

XAUUSD Trading psychology - is based upon how well you know yourself to be able to profit from your strong points, as well as control you weak ones, it has a lot to do with how successful you'll be when it comes to investing. When you truly know yourself, then you are aware of how you are going to react under certain circumstances and you as a gold trader can use protect yourself from self-damaging actions or decisions when it comes to managing a transaction.

The right mindset can be a tool that can help an investor control and predict their emotions so that they are able to make correct decisions depending on facts. The lack of this psychology can be a hindrance to success since the movements of the prices are pretty unpredictable.

The right psychological outlook can help investors face the issues and make sound decisions in the end. There should be a balance among all the different aspects of trading that determine whether a trader will be successful when transacting.

System Mindset

This is a part of the XAUUSD Plan about mindset

MINDSET/PSYCHOLOGY

Invest without Emotions (greed, fear, anticipation, impulse, bias, overexcitement)
I trade what my-eyes see not what I feel.
I'll be patient.

My job isn't to be the trade system!

It is not to decide which signals looks promising and which doesn't.

That's the job of my xauusd system. My system has a set of trade rules which tells me this is what I follow. Do not get caught up in price action & make rules as you go along.

MY JOB IS

To sit patiently & wait for my system to indicate that it's time to enter or it's time to exit. And then with extreme focus I execute my strategy as planned.

Taking trades not given by the trade system, second guessing system & not taking those given, hesitating & getting in late, anticipating & getting in early are all common place & boil down to lack of faith in system and not having a burning desire on accurate trade execution.

GOAL: To have 100 % undivided desire on mastering my ability to execute my system accurately.

The more you develop your ability to step back from price movement & watch the market calmly, waiting for a signal, the easier it'll be to witness fluctuations of your emotions without getting sucked into them and allowing them to throw you off your game.

WEAKNESS

I am greedy.
I over-trade
Make a list of all your weaknesses that interfere with your strategy. This is the first strategy toward helping you over-come these weak-nesses. Use psychology to help you over-come them.

Note: by writing down your weaknesses you will start recognizing them as you progress, once you do this you will start to avoid these mistakes and your results & profit will improve.

To learn how to write these guidelines on your Trading plan, read the Trading plan tutorial at the key concepts guide section.

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XAUUSD Psychology: Emotions Fear and Greed

Greed

Fear

Hope

System Mindset