As a first-time trader, it is vital that you approach your trading activities in the right frame of mind and know when it's the right time to walk away from a trade. Analysing the markets and predicting the direction of a price movement is just one aspect of what makes a successful trader.
Adopting a disciplined approach and finding a trading strategy that works for you is vital. If you find yourself making trades based on your hunches alone, you are acting impulsively and should walk away.
It is also important not to break your stress threshold barrier. A small amount of stress can actually make you a better trader but if you overdo it and exceed your stress comfort level, you will start making fatal errors.
If trades don’t go your way, controlling your emotions and keeping your cool can work wonders. The natural reaction of traders who lose out on a trade which has not gone according to their predictions is to double down on the next trade to try to make up for their losses straight away. This is a big mistake. It is important to stay calm and stick to your plan. The same advice applies when you win. You should never get over-confident and try to ‘ride your luck’.
Trading psychology is a key part of the equation of making a success of trading. It is a tried and tested formula as any experienced trader will confirm.