Gold Psychology: Emotions Fear & Greed

Greed

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

With the right investment strategy, the market can certainly be very profitable but greed is always a factor in any human endeavor, especially in investing. Greed in XAUUSD leads to over trading. When a trader falls in to this trap, there is 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 & your profits, to maintain discipline traders require to use the right psychology principles.

Transforming Your Psychology Mindset in Gold To Improve Your Gold Results

Transforming Your Psychology Mindset in XAUUSD To Improve Your XAUUSD Results

XAUUSD 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 is called good luck. But shortterm 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 trading 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 and learn how to avoid these emotions when trading the trading market.

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

Sometimes, however, psychology problems have nothing to do with your gold strategy. They are the results of pre-existing problems that will not 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 gold trading mindset then you'll make the wrong decisions & lose money on a consistent basis.

XAUUSD psychology teaches courage. In 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 may be driven by emotions but it also can be predicted: because it has ALWAYS been driven by the same basic human emotions.

Gold 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 will be when it comes to investing. When you truly know yourself, then you're aware of how you are going to react under certain circumstances & you can 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're 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 & make sound decisions in the end. There should be a balance among all the different aspects of trading that determine whether an investor 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, over-excitement)
I trade what I see not what I feel.
I will be patient.

My job is not to be the trade system!

It is not to decide which trading signals looks promising & which does not.

That is the job of my trading system. My system has a set of guide-lines which tells me this is what I follow. Don't get caught-up in price action and make trading rules as you go along.

MY JOB DESCRIPTION IS

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

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

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

The more you develop your ability to step back from price movement and watch the market dispassionately, waiting for a trading signal, the easier it will be to witness the 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 which are interfering with your gold trading strategy. This is the first step to help you to overcome these weaknesses. Use psychology to help you to overcome them.

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

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

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Trade Gold Trading

Gold Psychology: Emotions Fear & Greed

Greed

Fear

Hope

System Mindset