The realm of online trading is fundamentally different from the social systems in which we were born and raised. In this world, market events and price movements do not respond to our individual will or attempts at manipulation. From birth, we learned to operate within a particular social environment, acquiring various thinking strategies as well as several social control and manipulation skills. To some extent, each of us has learned techniques to alter or influence the external environment to make things happen more to our liking. However, in the field of online trading, manipulation skills – or any similar techniques – do not work. The market does not respond to our desires or any efforts we make against it. Here, I am referring to small investors, not insiders who have access to vast amounts of money or influence to sway prices.

The reason for the stock market failures of otherwise successful people in other areas of life is that their success was often achieved by manipulating their surroundings, a skill that can’t be applied to price movements. While understanding how to manage people can grant advantages in many areas of life, this quality cannot be leveraged in the forex or stock market. Traders need to learn to control their emotions and accept that the market operates under its own rules and that we cannot impose our will on price movements.

Self-awareness and emotional intelligence are critical for successful trading. A trader must learn to process and respond to market information without allowing emotional reactions to influence their decisions. Emotions like fear or greed often lead to poor decisions in trading. For online traders, it’s essential to accept the principles by which the market operates and to understand that mastering self-control and developing emotional intelligence are vital for success in this unpredictable, dynamic, and risky environment. Achieving objectivity and emotional self-control allows traders to view price movements and market information with clarity. This enables them to make decisions based on the current situation and market trends rather than manipulation or emotional responses.

When trading, we must learn to govern ourselves—the way we interpret market information and react to it. While we can’t control the thoughts and emotions that arise, we can control whether these direct our actions. If we reach this level, we can objectively perceive the information conveyed by price movements and act in accordance with the present situation.

Thus, our individual upbringing, experiences, and backgrounds can influence stock or forex trading in various ways. Here are some examples of how these factors can complicate trading:

In childhood, we may have learned—through family or school—that risk should be avoided and that loss is something negative. In trading, however, this mindset can greatly impair decision-making, as the stock market inherently involves risk.

If we were taught that making money is a difficult, time-consuming process that always requires hard work, then attempts to achieve quick wealth or profit often lead to negative outcomes.

A lack of emotional intelligence or negative emotional patterns can make it challenging to manage emotions during trading. These could include impatience, fear, anxiety, greed, or excessive confidence or arrogance.

How we handle money influences our trading decisions. For instance, if someone is overly attached to their money or takes excessive risks, this too can negatively impact trading activities.

Our personal values, motivation, goals, and priorities affect our willingness to take risks in trading. If, for example, security is a top priority, riskier investments and trades may be avoided, thereby limiting the trader’s ability to take positions that could yield higher returns.