Don Hays “ Emotions are your worst enemy in the stock market.”
Last time when you entered a trade, what were you going through? This question is a million dollar question for a trader. The reason behind this question is one and only one and that is psychology. Psychology plays a pivotal role in the total involvement of a trader in his/her trades. Trades can be won or lost on account of wrong psychological management in spite of the fact that the trade initiated was based on strong fundamental and technical support.
Do you feel the ecstasy when the trade is going your way and feel dejected when it is not. The more strength these emotions have in you the more are the chances of the trades not performing well. The targets of trading are to extend the profits and to cut the losses, however a weak psychological support tends to do the opposite.
The most potent tool to handle the psychological situations pertaining to trading highs & lows which I found to be very helpful is the trading journal.
A trader has to be proficient both in psychological and money management. A complimentary approach for the management of money and psychology will be the ultimate winning weapon in stock market trading. A trader who knows the intricacies of mass psychology will surely fare better while taking decisions in tandem with the markets. The psychology of a trader should help him/her to keep the eyes open and make decisions seeing the reality of how the markets will behave and what turns are in the offing.
Last time when you entered a trade, what were you going through? This question is a million dollar question for a trader. The reason behind this question is one and only one and that is psychology. Psychology plays a pivotal role in the total involvement of a trader in his/her trades. Trades can be won or lost on account of wrong psychological management in spite of the fact that the trade initiated was based on strong fundamental and technical support.
Do you feel the ecstasy when the trade is going your way and feel dejected when it is not. The more strength these emotions have in you the more are the chances of the trades not performing well. The targets of trading are to extend the profits and to cut the losses, however a weak psychological support tends to do the opposite.
The most potent tool to handle the psychological situations pertaining to trading highs & lows which I found to be very helpful is the trading journal.
A trader has to be proficient both in psychological and money management. A complimentary approach for the management of money and psychology will be the ultimate winning weapon in stock market trading. A trader who knows the intricacies of mass psychology will surely fare better while taking decisions in tandem with the markets. The psychology of a trader should help him/her to keep the eyes open and make decisions seeing the reality of how the markets will behave and what turns are in the offing.
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