Successful day trafficking is not just about indicators and charts – it’s about understanding human behavior. Market psychology plays an important role in short -term value movements, and mastery it gives traders a real advantage.
Fear and greed drive in the market:
When prices are pumped, the greed ends. Merchants ignore the warnings of warnings and ignore overlaving, foam. When the market crashes, the fear leads to nervousness. Identifying these feelings in the market helps you act against the crowd.
Central concepts:
- Support and resistance psychology: Prices often bounce due to magic at some levels, but because traders buy/sell orders based on previous behavior.
- Volume confirmation: Spikes in the volume show strong beliefs behind a trick. A high volume breakout is more than one cleared with low volume.
- Fakeout and Trap: The market likes to implement impatient traders. Wait for confirmation – don’t buy the first green candle or shorten the red first.
Stay emotionally neutral:
Discipline is one that separates the winners from the loser. Set daily goals, stick to your stop loss, and avoid taking revenge. Journal always your trades to learn from mistakes.
The more you understand how fear, greed and crew behavior effects affect the price action, the better your business decisions will be.