Characteristics of exchange experiences

Psychology of human behavior is the key to understanding the financial markets. All the normal, everyday feelings and aspirations reflected in the harsh market battles like a chemical solution to the litmus test.

To all our feelings – fear, greed, hope, etc. – in a fast paced stock trading have often decisive influence on the behavior of the trader. Weak and self-hungry and slow, all of these people are doomed to become victims of the market. Knowing their abilities and preferences, positive and negative qualities can help to avoid ruin. If you add to that the ability to adequately assess the mental state and behavior of market crowd, you are guaranteed success.

Greed
The driving force that compels us to work on speculative financial markets, is greed. If your greed low, the transactions you will be little, miss a lot of good points. In this case, to address another type of business, more calm.

If your greed knows no boundaries, then you will try to conclude as many deals, putting themselves at risk of unclear prospects. Better to play at the casino, it will be closer to nature and less expensive for the purse.

The result of greed will be the motivation for the conclusion of transactions.

There are two kinds of motivation:

Rational motivation – are usually present before the first entry into the market at a young trader, as well as the professional trader;

Irrational motivation – is reflected in azarte player has almost every trader, but some control over their gambling, while others are slaves to emotions and are doomed to lose.

Identify, under the influence of greedy passion you play or not, you can use the following signals. If the trader has asked the other: “What do you think about this?”. If he tells others about their open positions. If the trader does not work plan drawn up before the conclusion of transactions – all of this suggests that this person is most likely influenced by passion rather than reason. The best remedy for gambling is a plan of transactions (the financial plan of action).

The hope and expectation
Another factor that are moving the trader at the conclusion of transactions, is the hope of making a profit. Of course, the meaning of any work to earn money. However, when calculated over prevalirovanii hope you risk to overestimate their own capabilities in the analysis of the situation and make a small “fly” – a reality in the “elephant” – a dream. The hope must be in a subordinate relation to the calculation, and greed. It is a great hope of leading novice traders ruined.

Hope the behavior of traders in two major cases:

At the time of entry into the market. Only hope for profit can make a person commit a specific act on the financial market;

At the time of loss, when there is hope for change for the better. This hope is held three phases of the development and existence. In the first stage, when the losses are small, the hope is inevitable and may be justified (if you believe in the forecast, and act according to the previous plan).

In the second phase, with the hope of further growth of losses dates back to its peak. At this point, a trader of all, difficult to separate its expectation of real action market. The question – to close loss-making position or leave everything as is – for the most part, will depend on how much intelligence trader controls his desires.

The third stage is the critical loss when hope has left a trader, and to replace it comes desperation (a particularly strong expression of frustration with the weak and the novice traders). Most market players know that feeling of emptiness, when it seems as if the whole world is against you.

The man who did survived the last phase of hope, can be safely held a trader. In a subsequent trade practices developments third phase will be to manifest itself in the form of fear.

Fear
Fear arises when you get off. Some fear paralyzed and can not stop in time and lose everything. Others fear to go and negotiate sometimes conflicting transaction, which is also usually only speeds up the devastation.

At a critical moment is better to do than sit back and watch how the dreams of a beautiful future together with evaporate quotations. At the same time – protivopostavte convulsive act nervous holerika reasonable and concerted steps to resolve the crisis, do not panic. Be clear on the you to open a position (until the emergence of fear) plan.