As a trader, it's not good to rely solely on trading as your only source of income. Why? Depending solely on trading puts immense pressure on you to meet monthly bills. The consequence? You may find yourself taking unnecessary and low-quality trades.
However, when you have another or multiple other sources of income alongside trading, you can stay relaxed and have the mental comfort needed to make quality decisions. For example, you can be a trader and be a Bitcoin miner.
Do you have another trading psychology tip to share with me?
The trading aspect has to me been hugely over hyped that many people think that they can easily come on board to be come successfully. The narrative around it is definitely a bad mentality that many people carry into it and that’s why we have so many psychology issues with traders. Investing on its own is much much less risky than trading and whenever you wish to invest the advice is always to do that with an amount that you can afford to lose, same thing if not a stricter rule applies to using funds to trade.
Now the question lies does a one income person has the luxury to lose their money easily on trades, if you can even with a single income then you can trade but if you cannot then try to something extra or better you work on psychology and that should be create a trading journal, have a specific number of trade to trade in like a week. It shouldn’t be more than 5 and also. When the winnings are with you, do not over trade as you can.