There is a substantial risk of loss associated with trading Derivatives . Losses can and will occur. My methods will not ensure profits

Wednesday, March 28, 2012

Emotional Baggages

One of the most difficult aspect of successful trading is dealing with the is almost impossible to be emotionless as a human being. But if you experience extremely unpleasant emotions during setbacks and euphoric emotions on a big gain,be careful.

pleasant emotions are motivating at a moderate level,but extremes can be harmful.Extreme positive emotions will lead to impulsive decisions and abandoning of risk control methods. Likewise If you are frustrated and worried, you will not be able to concentrate and this will lead to incorrect and costly trading decisions.

If you search the web , you can find thousands of articles written about emotions in trading.Read some and You can find the root cause of all emotion related problems is "Living in the past".We carry the memories of past actions and experiences.Only solution is to start "Living in the present"

Stop worrying about what happened.If you have a good trading strategy,stick to it.Ignore the outcome of individual trades, Ignore CNBC, ignore the experts, ignore the gurus.

Leave your "Emotional Baggages" behind ,Trade your plan and strategy.It will take care of itself.

1 comment:

  1. Indians have a thing about the past :) which is why they like to accumulate and accumulate and carry it wherever they go. Its a culture thing. :)


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