XAUUSD Psychology: Emotions Fear and Greed

Greed

Most investors are not satisfied with 20 % - 40 % profit annually, what these traders/investors want is to double or triple their 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 XAU/USD 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 trading psychology mindset principles.

XAUUSD Psychology Greed in Markets - XAUUSD Psychology

XAU/USD Psychology Fear and Greed - XAUUSD Psychology - XAUUSD Psychology Explained

Gold psychology - teaches you how to fight your greed and 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 will 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 positions 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 and learn how to avoid these emotions when trading the markets.

Identifying long term trends can improve results, identifying these market trends can help you plan the best strategy so that you as a trader 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 won't be solved by different strategies and methods. Your biggest enemy when trading is you. It isn't 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 and lose money on a consistent basis.

Gold 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 & 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, & also control you weak ones, it has got a lot to do with how successful you will be when it comes to investing. When you truly know yourself, then you are aware of how you're going to react under certain particular 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 a trader control and predict their emotions so that as they're able to make the correct decisions depending on the facts. The lack of this market psychology can be a hindrance to success since the movements of the prices are pretty unpredictable.

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

System Mindset

This is a part of the XAU/USD Plan about mindset

MINDSET/PSYCHOLOGY

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

My job isn't to be the system!

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

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

MY JOB IS

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

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

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

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

WEAKNESS

I am greedy.
I overtrade
Make a listing 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 as a trader over-come them.

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

To learn and know 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