Psychology of Short Term Trading
In this video, Roger Hawes, an Analyst from the Corellian Academy, focuses on the psychological aspects of short-term CFD trading and discusses the challenges and strategies involved. Short-term CFD trading, which requires quick decision-making in a dynamic environment where traders must take profits and cut losses rapidly, demands fast decision-making. Decision-making becomes more complex without preset protection levels.
According to Hawes, having a theme or strategy behind each trade and developing a structured approach can be helpful. In addition, familiarity with the chosen trading product and establishing appropriate risk levels are also emphasized. It is also important to avoid under/over-leveraging, which can make decisions less effective and cause substantial losses and emotional panic.
Furthermore, a thorough understanding of market levels, past and upcoming events, and major economic indicators is deemed crucial to a trader’s overall preparation.
Moreover, the importance of discipline and the avoidance of overtrading during volatile and dynamic markets is emphasized.
Finally, it may be helpful for traders to analyze their successes and failures to improve their overall trading strategy by assessing and learning from their daily trading patterns.
In conclusion, there are challenges and psychological aspects in short-term trading, such as the need for quick decision-making, managing emotions, and adapting to market volatility. Accordingly, having a structured and disciplined mindset while learning from each trading session is crucial to one’s overall success.
