Flinch Mentally

Trading is an activity involving risk and reward, and it requires traders to make quick and rational decisions in an uncertain market environment. However, traders are often affected by their own emotions and psychological factors, causing them to deviate from their trading plans and even make wrong trading behaviors. Among them, the two most common and dangerous psychology are fear and greed, which will cause traders to have a retreat mentality, that is, hesitation when they should enter or increase their positions, and hesitation when they should exit or reduce their positions.

What is flinch mentally?

Withdrawal psychology is a psychological phenomenon caused by fear and greed, which causes traders to lose confidence and judgment when facing market fluctuations, thereby missing opportunities or causing losses. Withdrawal psychology has the following manifestations:

When the market rises, people are afraid of missing out on profits and blindly pursue higher prices; when the market falls, they fear losses and rush to close positions.

When the market rises, greed looks forward to higher profits and is unwilling to close positions. When the market falls, greed is unwilling to admit mistakes and is unwilling to stop losses.

When the market trend is clear, people lack confidence and dare not enter the market or add positions; when the market trend is unclear, they lack patience and enter the market or add positions at will.

When a reversal signal appears in the market, one does not believe in one's own analysis and does not dare to exit or reduce a position. When a market pullback signal appears, one does not believe one's own judgment and does not dare to hold or increase a position.

The dangers of flinch mentally

The psychology of withdrawal will cause serious harm to traders’ trading results and mental health. The main reasons are as follows:

The psychology of withdrawal will cause traders to deviate from their trading plans and fall into random and blind trading behaviors, increasing transaction risks and costs.

The psychology of withdrawal will cause traders to miss good opportunities in the market and reduce trading profits and success rates.

Withdrawal psychology will cause traders to fall into emotional and extreme thinking patterns, resulting in overconfidence or excessive self-blame emotional reactions, which will affect trading decision-making and learning abilities.

Withdrawal psychology will cause stress and anxiety in traders, affecting physical and mental health and quality of life.

How to overcome flinch mentally?

Withdrawal is a natural human reaction that cannot be eliminated overnight. However, traders can reduce and control the impact of withdrawal psychology and improve their trading level and psychological quality through the following aspects:

Establish a reasonable trading plan. A trading plan is a trader's guide to action. It should include trading goals, risk management, entry and exit strategies, fund management and other elements. Traders should formulate a reasonable trading plan based on their own risk tolerance, trading style, market environment and other factors, and insist on executing it without changing it at will.

Develop good trading habits. Trading habits are traders' behavioral patterns, which will affect traders' thinking and decision-making. Traders should develop good trading habits, such as regularly analyzing the market, recording trading logs, reviewing trading results, learning trading knowledge, etc. These habits can help traders improve their trading skills and confidence and reduce emotional interference.

Adjust a suitable trading mentality. Trading mentality is the psychological state of a trader, which affects the trader's emotions and behavior. Traders should adjust a suitable trading mentality, such as staying calm and objective, accepting the uncertainty and randomness of the market, respecting the laws and trends of the market, admitting their own mistakes and shortcomings, etc. These mentality can help traders avoid fear and greed and increase rationality and flexibility.

Maintain a good lifestyle. Lifestyle is a trader's quality of life, which affects the trader's physical and mental health. Traders should maintain a good lifestyle, such as proper rest and sleep, balanced diet and exercise, rich interests and entertainment, active social interaction and communication, etc. These lifestyle options can help traders reduce stress and anxiety and increase their happiness and self-worth.

Conclusion

Withdrawal psychology is a common and dangerous psychological phenomenon, which will seriously affect traders' trading results and mental health. However, withdrawal psychology is not insurmountable. As long as traders can establish a reasonable trading plan, develop good trading habits, adjust a suitable trading mentality, and maintain a good lifestyle, the impact of withdrawal psychology can be gradually reduced and controlled, thereby Improve your trading level and psychological quality.