EagleTrader Trading Psychology: Want to go against the trend? Be careful of risk management and self-inflation

Among traders, some people are unwilling or unable to open short positions, and only speculate on the rise of a certain investment instrument. However, in addition to these people, some traders also take the exact opposite approach – frequently short selling and counter-trend operations. For proprietary traders, how to manage this psychology and risk well has become the key to testing their trading ability.

Can short selling make you make money faster?

Many traders believe that the short selling market can allow them to make huge profits in a short period of time, especially in bear markets, where prices fall rapidly. However, in practice, short selling is not without risks, especially for traders who lack strict risk management. Market fluctuations are often unexpected, and short selling may lead to irreparable losses if it fails. Therefore, how to effectively manage risks and avoid excessive impulsivity has become a necessary skill for traders.

This is why in the EagleTrader self-operated trading exam, we particularly emphasize the importance of risk management. Traders must strictly abide by risk control rules, control positions, and set stop losses reasonably in platform assessment to better avoid the risks brought about by blind short selling.

The mentality of going against the trend

In trading, going against the trend is often a manifestation of self-provement. Some young traders want to prove that they are smarter than the market by shorting. They believe that longing is the choice of most people, and shorting can reflect personal uniqueness. Although this mentality can temporarily achieve short-term victory, it often lacks a long-term vision.

From the temptation of making quick profits to psychological challenges, going against the trend is not just a trading strategy, but also a manifestation of a psychological state. If you want to make stable profits in the long run, traders must overcome the blindness brought by this mentality and truly understand the importance of risk management.

Self-inflation and trading psychology

Overinflated self-awareness is one of the root causes of many traders’ failures. Many times, in order to prove themselves, young traders often ignore the complexity and unpredictability of the market itself and blindly operate against the trend. At this time, they are more likely to ignore their emotions and market changes, resulting in decision-making mistakes and even causing major losses.

EagleTrader’s proprietary trading exam requires traders to always keep a calm mind and make rational judgments. This also prompted EagleTrader to carefully design the examination rules to help traders develop strict execution of trading systems and risksManagement habits. Excellent traders not only have strong technical analysis skills, but also have tenacious psychological qualities and are able to make rational decisions in the face of pressure.

Psychological control and risk management are the key to success

Whether it is a short selling operation against the trend or a trading mentality that blindly pursues rapid profits, lack of sufficient risk management and psychological control can lead to catastrophic losses. In EagleTrader’s proprietary trading exam, traders will learn how to make stable profits in market fluctuations through strict simulated trading, risk control and psychological training. The environment of simulated fund trading can help traders better adjust their mentality, control risks, and accumulate practical experience.

If you have decided to challenge yourself and develop real trading skills in the simulated environment of EagleTrader, then be mentally prepared for yourself and make sure you can strictly follow the rules of the platform and overcome psychological barriers in all trading. Through such an exam journey, you will not only receive the platform’s real rewards, but also be able to raise your trading ability to a whole new level.

Let EagleTrader help you move forward steadily in the trading market, challenge the limits, and become a professional trader!