Tilt in trading, what threatens such a condition and how to get out of it
Emotions have a much greater impact on trading success than it might seem at first glance.
Their influence is simply enormous; it is under emotional influence that traders make gross mistakes that lead to losses or even loss of deposits.
It is generally accepted that the most successful traders are those who can manage their emotions, do not panic, and do not make rash trades in a state of euphoria.
The lack of calm and concentration in trading is often called tilt trading, and it is believed that professional investors should avoid such conditions.
At the same time, tilt is understood as any deviation from emotional stability, no matter in which direction it occurs; both negative and positive emotions are equally dangerous.
Traditionally, we will try to understand the concept of this term using specific examples.
Positive tilt in trading
You open a buy deal after good news appears, the price begins to rise quickly, after a certain time you receive the planned profit and close your position.
After this, the price continues to rise, being on an emotional high, you again open a buy transaction, and even with a larger volume than the first one.
But the trend has already exhausted its potential and a gradual decline in price begins, you still believe in luck and continue to hold your position, ultimately the losses on the second order exceed the profits on the first.
That is, we can say that no matter how successful your previous transactions were, try to reassess the situation on the market before placing your next order.
Negative tilt in trading
With the negative tilt that appears in trading, everything is even simpler. A person who has already made several mistakes is usually inclined to repeat them.
To trade successfully, you must first get out of the state of emotional depression, analyze the reasons for the mistakes you have made, and only then begin further work.
Under no circumstances should you try to make up for unsuccessful trades, and even with an increase in volumes, this approach rarely ends successfully.
Most often, tilt in trading occurs among inexperienced traders; it is not for nothing that most recommendations for beginners advise trading on a demo or cent account for as long as possible, this will allow you to learn to cope with your emotions without financial losses.
In conclusion, I would like to note that the majority of female traders are less prone to tilt in trading than male traders; they are more careful and almost always make informed decisions.