In trading, whether it involves stocks, cryptocurrencies, or other financial instruments, it's easy to believe that success solely hinges on sharp analytical skills, the ability to interpret charts, and understanding market fundamentals. However, the truth is that an equally large, if not larger, part of the equation is psychology. Our emotions, those deeply rooted human reactions like fear and greed, can have an enormous impact on our trading decisions, often in a way that undermines even the most well-thought-out strategy. Therefore, understanding how our own psychology functions in the trading context and developing strategies to manage our emotional reactions is an absolute necessity for achieving long-term success. Just think about how easy it is to get caught up in the fear of missing out on a potential profit, that feeling of FOMO (Fear Of Missing Out) that can make us jump into a trade without having done our homework properly, only to see the market turn against us. Or how...
Creating a budget is a fundamental step towards gaining control of your finances, achieving your financial goals, and reducing the stress that money can sometimes bring. It involves mapping out your income and expenses to get a clear picture of where your money is actually going and then actively planning how you want it to be used in the future. The process begins with carefully listing all your income sources. This could be your salary after tax, any side jobs, income from investments, benefits, and any other regular money you receive. It's important to calculate your net income, meaning the amount you actually receive in your account after all deductions. If your income varies from month to month, it might be helpful to calculate an average based on the last few months. The next step, which is often the most revealing, is to track your expenses. You can choose different methods to do this: either manually in a notebook or spreadsheet, or by using a budgeting app. A good way to s...