KUALA LUMPUR, MALAYSIA – Media OutReach – 2 March 2023– In anticipation of a webinar series on trading psychology by trading expert Gero Azrul, OctaFX presents a comprehensive guide to identifying and overcoming emotions that harm your trading.
Developing a trading strategy is not enough to succeed as a trader. The strategy will give you consistent positive results only after you master the psychology of trading and overcome emotions that negatively impact your decision-making process. Fear, greed, and various biases all affect how you perceive the market and open orders. To handle them and maintain financial discipline, traders use several techniques that the OctaFX expert Gero Azrul will describe at length during the eleven-part webinar series on trading psychology starting on March 3, 2023.
Let’s describe the most common trading psychology mistakes and some ways to avoid them.
Five ways your emotions can influence your trading
At the moment when you have to press that ‘buy’ or ‘sell’ button, emotions hit different. Your brain tells you stories of imminent success and utter failure, causing you to make impulsive trading decisions. At the core of it, there are five ways emotions can influence your trading:
Fear of missing out (FOMO). Traders sometimes open new orders when they feel they could earn on a particular market movement, often promoted by financial influencers on social media. However strong it may seem, it is better to avoid placing orders on rumours and first carry out thorough analysis and use risk management tools.
Relying on gut feeling and intuition. This is never a good way of conducting trading activities. As lucky as one might be, after a few winning trades, there will inevitably be a streak of losing ones wiping away all profits and possibly resulting in greater losses.
Gambler’s fallacy. Some traders erroneously believe that just because they had several losing trades in a row, the next one would be a winning one. However, the streak of orders-gone-red might not end until the whole deposit is spent.
Hindsight analysis. It often seems easy to identify good entry points for orders in the past. Consequently, trading might seem simpler than it is to beginners, which could lead to upsetting results. While such analysis can be helpful, you should always have a consistent strategy to base your decisions on, as you will likely give way to emotions in the real-time, high-pressure market environment.
Keeping your orders open for too long. Seeking proof that you are right and staying in a trade for too long could result in a costly mistake. Try to stay objective and exit a trade when it’s gone past your acceptable loss level.
How to avoid trading psychology mistakes
There are several ways you can put your emotions under control when trading.
Develop a trading strategy and keep to it. A well-defined trading strategy will help you stay focused on your goals and prevent impulsive decisions. Your trading plan should include clear entry and exit points, risk management techniques you are going to use, and a trading schedule based on your preferred time frames and instruments.
Capital protection comes first at all times. Before trying to maximise your profits, ensure your trading capital is protected. A good rule of thumb is to use no more than 4% of your capital on a single trade and keep your loss-per-trade at a maximum of 25%. If you quit it every time it gets there, no matter how you feel about the future market movement, your capital will be quite safe.
Keep a trading journal. A trading journal can help you analyse your trading performance and identify areas for improvement. Keep track of your trades, including entry and exit points, the reason for the trade, and its outcome.
Take a break when you need one. You are more likely to make mistakes if you are stressed or tired. If you have a series of consecutive losing orders, you might also need a break. Get some rest from the emotional pressure and carefully analyse what happened.
Learn from your mistakes. They are inevitable. Remember that mistakes are there to help you refine your trading approach and make it more profitable.
‘Trading psychology is critical in achieving your trading goals. Traders who can successfully manage their emotions are more likely to succeed in the long run. However, it is a wide-ranging topic with its points of application on every level of the trading process,’ Gero Azrul commented.
In his webinar series, Gero Azrul will talk in detail about various psychological techniques and ways to make trading less stressful and more effective, as well as show practical examples of implementing those.
The issuer is solely responsible for the content of this announcement.
OctaFX is a global broker providing online trading services worldwide since 2011. It offers commission-free access to financial markets and a variety of services already utilised by clients from 150 countries with more than 21 million trading accounts. Free educational webinars, articles, and analytical tools they provide help clients reach their investment goals.
The company is involved in a comprehensive network of charitable and humanitarian initiatives, including the improvement of educational infrastructure and short-notice relief projects supporting local communities.
OctaFX has also won more than 60 awards since its foundation, including the ‘Best Online Broker Global 2022’ award from World Business Outlook and the ‘Best Global Broker Asia 2022’ award from International Business Magazine.
Expanding on the global digital arms race that governments and corporations are engaged in, this full-day forum will see industry leaders speak, and four interactive panel sessions. Event date: 21 March 2023. Contact us to book your seats now!
The threat matrix has evolved to include information warfare, cyberspace incursions, big data and behavioural communications. Business leaders need to be aware of these threats to survive. What are you doing as a key stakeholder?
Special session: Cyberwarfare Waged on the Corporate Sector - Lessons from the Russia-Ukraine Crisis. Corporations are in a digital arms race that many don't realise. How does this relate to your organisation?
The Malaysia Global Business Forum (MGBF) will be hosting a roundtable on ‘Designing the Future of the Digital Economy’ on 23 February 2023. It is the culmination of the first three MGBF Exclusive Roundtable Series titled ‘The Evolving Threat Matrix in the Digital Economy’ held throughout 2022. According to the […]
The Founding Chairman of the Malaysia Global Business Forum (MGBF), Nordin Abdullah, today spoke on Bernama TV’s leading English talk show, The Brief, hosted by Jessy Chahal, on the topic of a stable political reality and what that means for the Malaysian economy. Nordin said, “The first thing that it […]
More than 1,100 years ago, Muhammad ibn Musa al-Khwarizmi was developing the mathematical formulas that we know today as algorithms which now have become so intertwined with the business fortunes of global media giants and the very fabric of geopolitics. A series of recent high level international reports have revealed […]
KSK Land has been recognised by the Malaysia Global Business Forum (MGBF) for its role in attracting high net-worth individuals to Malaysia post-pandemic. The first challenge in investor attraction is “selling” the country. In the context of Asia, Malaysia is competing with some very established investment destinations. The second […]
Malaysia, in particular Kuala Lumpur, continues to position itself as a regional centre to do business, educate a family and enjoy a global lifestyle. One company, KSK Land, has taken the lead in positioning itself and the city of Kuala Lumpur as a property investment destination for the global citizen […]
The upcoming budget represents an opportunity to build resilience in the critical sectors that will form the backbone of the country’s future-facing economic ambitions. This however needs to be achieved in the context of managing the community sectors most impacted by COVID-19 over the past two years. The Keluarga Malaysia (Malaysian Family) […]
Malaysia Global Business Forum (MGBF) has moved to support the creative economy as the overall economy moves into a recovery phase following the COVID19 pandemic. As a step in the direction of normalcy, the MGBF has agreed to host the art exhibition “I Know You’re Somewhere So Far” by one […]
Congratulations to Datuk Seri Ismail Sabri Yaakob for taking up the mantle of the ninth prime minister of Malaysia. There is nothing normal about the situation; it could not have been scripted but it has kept the spectrum of media, mainstream and social, gripped. The first order of business for […]
In a stirring speech to the nation, President Joseph R. Biden, Jr. stamped his brand of leadership on the presidency, in his first act as the 46th president of the United State of America, it signaled several shifts. Perhaps the weather was foreboding with snow falling before the ceremony that […]
KUALA LUMPUR, 6 July 2022 – As the global economy continues to deal with unprecedented levels of disruption caused by the pandemic and the conflict between Russia and Ukraine, the convergence of energy security and food security issues has become a front-of-mind issue faced by policy makers and consumers alike. […]
KUALA LUMPUR, 23 June 2022 — Malaysia Global Business Forum (MGBF) ties up with scoutAsia to ensure that businesses are equipped with deeper regional insights. The past two years has seen a massive shift in the way businesses are conducted with digitisation, digitalisation and automation continuously being adopted to improve […]
KUALA LUMPUR, 25 May 2022 – The Malaysia Global Business Forum (MGBF)’s exclusive roundtable on ‘Security Concerns in Critical Value Chains’ was held in a hybrid setting yesterday at the Eastin Hotel Kuala Lumpur. The guest of honour was Yang Berbahagia Tan Sri Dato’ Seri Rafidah Aziz, former minister of […]
We live in the age of crisis. At the heart of any crisis is the threat of rapid change. Change too deep or too wide that the current coping mechanisms for an individual, corporation or government are unable to remain resilient. An unwelcome paradigm shift, like the proverbial spider, that […]
The Malaysia Global Business Forum (MGBF) has released a report following the roundtable on ‘Digital Resilience in the Corporate Sector’, which was recently held in Kuala Lumpur. In attendance as guest of honour was Deputy Minister of Communications and Multimedia, Datuk Zahidi Zainul Abidin. The report recommended several critical development […]
Trade and investment delegations will trickle back over the next few months, but the second half of the year should see considerable return of business travellers. It was learnt that over 50 per cent of international business chambers and industry associations surveyed will consider sending exploratory teams to Malaysia during […]
KUALA LUMPUR, 30 March 2022 – The Malaysia Global Business Forum (MGBF)’s exclusive roundtable on ‘Digital Resilience in the Corporate Sector’ was held in a hybrid setting yesterday at the Element by Westin Kuala Lumpur. The discussion focused on what business leaders need to understand, to ensure business resilience and […]
The Malaysia Global Business Forum (MGBF)’s exclusive roundtable on ‘Addressing Weaponised Information in the Media’ was held in a hybrid setting today at the Hilton Kuala Lumpur. The discussion focused on addressing one of the most relevant threats to businesses in the digital economy – cyber threats causing physical and […]
The current floods that have impacted various parts of the country have given rise to an extensive commentary on the response cycles of various stakeholders. It has in turn led to continued crisis communications and statements in the media by agencies and ministries alike. This binary approach to the discussion […]
The formation of a special Cabinet committee to develop strategic measures to safeguard the economy amid the Covid-19 outbreak shows the Malaysian government is serious about creating a balance between the continued safety of the general population and the survival of the economy. In the global context, as many countries […]