The trends in online trading are often unpredictable

The trends in online trading are often unpredictable, and this manages to intimidate even the most rational people. This happens for example when a stock grows on the stock exchange until its value increases by more than 50%; this would be a rational time to sell, but few do this, since the

the common thought is that online trading is extremely volatile and therefore if the stock has risen by 50% it could continue to increase its value in the next few days.

In this way, the online trading investor runs the risk of losing not only the profit he was making but could even go down, making the trader’s expectations vain.

The advice that is given is to let the gains grow and cancel the losses, but due to an unfavorable initial situation the small trader is very afraid of losses, and in this way, he does not realize the profits he should make in trading.

Every person who is about to trade and online trading should analyze their profile, the degrees of risk they are able to face, and the losses they are willing to face in order not to be struck by fear and take unfavorable actions to the own

wallet. In online trading when you decide to invest real money you go against psychological games that are good to know and face before they create damage in the trader’s wallet.

This happens for example by setting stop-loss too low that no damage to the day trading the time to develop in a comprehensive manner, or in the opposite way it tends to close a trading operation too soon, in this way the gains dwindle not allowing comprise losses. In some cases, however, the trader gets caught up in pessimism and distrust in himself, going to doubt his own abilities. This mechanism will lead to always pursuing new trading systems and never to the improvement of what is used, thus risking triggering a cycle with no positive way out.

Another frequent mistake is to acknowledge having made the wrong forecast: sometimes when we open a trading position we are certain of the market trend, which even if it does not develop in the way we have foreseen, we do not give up retracing our steps, discovering ourselves thus to further losses. The truth is that online trading and trading are volatile markets where it is easy to make money but you must also take losses into account, predict them and be able to

maximize profits.