10 Principles Of Psychology You Can Use To Improve Your Online Trading

When trading in financial products there are quite a few things which must be kept in mind. First and foremost, understanding the basics of the trading is the most important. if you are into forex trading, then understanding the basics of various currencies is the first starting point. Without this being in place it would not be advisable to get into the market. The same is the case with commodities, stocks and shares. Each one has its own uniqueness and special features which must be taken into account.

There are some basic rules and regulations to trading which must be followed irrespective of the product that is being dealt. Further understanding the psyche behind CFD is something which we must all understand. We will look at 10 such tips which could help our CFD trading from the psychological points of view.

  1. Fear

Fear of losing is one of the biggest psychological factors which make many people stay indoors as far as CFD is concerned. They fear the transition from demo account to real money and this should be overcome.

  1. Greed

Being greedy is another big psychological attribute which you should control when it comes to trading in CFDs. It could lead to overtrading and getting into the market at the wrong time and should be avoided at all costs. Correcting this psychological attribute is of paramount importance.

  1. Stress

Stress is another factor which could lead to wrong decisions being made. Hence when you enter this market you must be in the right frame of mind mentally. Having some problem in the background could create more problems than solutions.

  1. Anger

You could have had a bad day in the trading and would be seething inside. When you enter the market the next session of the next day, it would be wrong to carry over the anger forward. This would lead you to desperation and in nine out of ten cases you will end up making mistakes.

  1. Joy

It is quite possible that a particular day you could have made a big profit and you could be in a state of euphoria and joy. As a mature CFD investor, you must understand that the each day is new and unique. Hence, it would be wrong to carry forward the euphoric state of mind to the next trading session. This is what reputed service providers like CMC Markets teach their clients.

  1. Being Patient

Rome wasn’t built in a day. Hence it is important to understand the virtue of being patient as far as your CFD transactions are concerned. You have to perfect the art of entry and this not happen in a day or two. It could take a few months and you may have to go through many demo sessions. Only after being reasonably sure about the demo sessions should you get into the live scenario. The more patient you are, the more would be the prospect of making money.

  1. Learn To Stay Calm And Composed

Being overtly euphoric or getting unnecessarily tensed up should be avoided at all points of time. If you are calm and composed, you will be able to come out with a concrete plan of action for the session. You are less likely to be driven by gut feelings, sentiments and emotions and will trade based on logic and ground realities.

  1. Learning To Be Decisive

Another big reason why people end up losing money in CFDs is because they are not as decisive as they should be. If you decide to enter a market your decision should be firm and not wavering. The same is the case when you decide to exit the market.

  1. Learn To Trade In Right Sizes

Another psychological barrier is your inability to choose the right size of trading. It should neither be too big nor too small. This comes with knowledge and also with your ability to keep psychological and emotional factors away from such trading decisions.

  1. Keep Sentiments Away

At the end of the day there is no denying the fact that you must act based on facts and figures alone and should avoid bringing in sentiments because of obvious reasons.

Hence at the end of the day keeping one’s psychological factors in check and making good use of them could lead to success in CFD trading.

 

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Is the Number of Payday Borrowers Really Increasing?

Payday lenders offer short term loans to customers, usually for a maximum of 31 days and with rates which are sometimes in excess of 500%. There are various reputable payday lenders, such as Wonga, however there are many who are not properly regulated and as a result, are charging disproportionate fees to borrowers. Payday loans are designed to deal with short term financial problems, such as an unexpected bill. They are not supposed to be used on an on-going basis to make ends meet; however, many borrowers are using them in this way and are sometimes paying back as much as four times the amount of the initial loan.

Vancity Talk Payday Loans

Financial establishment, Vancity have reported on payday loans, saying that there has been an increase in the amount of borrowers turning to payday loans during periods of financial difficulties. They say that the number of people using payday loans has increased by 58% in two years, with an increase of 604% in those who have taken out 15 or more of these loans. The report also talked about how borrowers are finding themselves trapped in a spiral, whereby they can’t afford to pay back the loans.

Industry Opinion

The payday lenders don’t share this opinion though and are not quite sure where the figures have come from. The Canadian Payday Loan Association spoke out about the comments, saying that they believe these numbers are incorrect and that in fact, there has been a decline in the number of payday lenders, due to regulation changes. Payday lending may have decreased but it still prominent within our society, due to the credit crunch and the fact that many people are still struggling to keep their heads above water.

Why Borrowers Turn to Payday Loans

There are many reasons why a large number of Canadians are turning to payday loans as an answer to their financial troubles. Many Canadians don’t have bank accounts as a result of where they reside or the fact that they feel the charges would be too high. A large number of borrowers are unaware of how much it can cost to take out a payday loan. There are high rates of poverty in some areas and low earners are finding it difficult to make ends meet. Although it can be a temporary fix for urgent needs, the payday loan is not supposed to be used over and over, which is where the trouble starts.

Potential Changes to Legislation

There have been a number of reports about payday loans in the news recently and recommendations have been made about potential changes to legislation. Some of these would be a greater transparency over the fees being charged, a tailored approach to lending, i.e. carrying out checks to ensure the borrower can afford to pay it back and providing customers with information on financial management. Some of these changes have already been implemented in the US, but Canada is yet to fully follow suit.

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Save Money on Your Bathroom Remodel

Are you considering remodelling your bathroom in the near-future? If your toilet and shower are currently teal or pink, then I hope you’re nodding your head right now. The good news is, if you can handle doing the work yourself, then the cost is really quite manageable.

You know when you get that bill from your mechanic (after your car had some work done to it) and you notice that 75% of the expense is due to labour  It’s the same story with remodels. When you pay a contractor to redo a room in your house, the majority of the expense in your bill is from labour. Continue reading

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