Don’t execute any trade instantly after winning a trade

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    Profile photo of Adam
    Adam
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    There a lot of people in the market who have lost their trades just after winning a trade in the market. It is not because they have a poor strategy, most of the time, they all have a working and successful strategy in the market. The reason traders lost in the market just after they have won a trade is purely psychological. Most of the traders consider their winning trades as a bonus trade. They simply ignore their profit and think that there is nothing wrong to take a risk with the money that they have just made. But in reality, things are not as simple as this. You need to consider your profit as your trading deposit.

    We are going to tell you, why you should not trade the market after winning a trade. Many traders find it hard to trade perfectly in the market when they have won one. You are over the top of your satisfaction, you are happy and elated and most importantly, you can see signals in the chart which do not even exist in the market.

    Risks of trading instantly after winning
    A majority of the traders who have traded the markets after winning a recent trade has found out, they all lost their next trades in the market. They do not understand why they have lost in the market. They have used the same strategy and the same market for their next trades. It was the same movement and trend in the market which have brought them profit in their trades. But all things changed in their next trades. They lose big time.

    There a scientific explanation why traders need to take a break after winning trades. When humans are happy, a hormone is released from their brains. This hormone causes them to overrate themselves and overestimate their success. As a result, people who are happy place trades in the market and lost them. It also causes them to visualize signals which may not even exist in their chart. All these reasons are very risky for traders. Moreover, the market is always changing in every second. You need to analysis the market before putting your money. When you are winning trades, it is only because you have made a good understanding of the live market trend. When you place trades after winning, chances are you do not take the time to analysis the market and just placing trades based on your past winning experience. These results in losing your trades. If you continue to keep trading in the market after winning trades, soon you will find that all that recent profits you have made are vaporing from your account.

    Control your emotions
    Emotions can be one of the most dangerous enemies for the professional traders in the CFD trading industry. Most of the novice traders in the forex market loses money due to their emotional trade. They simply execute random trades without doing the perfect market analysis and thus they lose money in real life trading. But if you truly want to become a successful trader then you need to learn the art of technical and fundamental analysis in the market. Some novice traders often ignore the power of fundamental analysis in the market. But in the eyes of the trained professional fundamental analysis is often considered to be the most powerful price driving catalyst in the forex market. If you can do the perfect fundamental analysis then you can easily measure the strength of the prevailing trend of certain assets. This will also give your strong emotional support in your real life trading. You will feel more confident and focus on quality trade execution.

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