- Not the strategies
- Not the tools
- Not the money
It is all about the psychology of the trader - emotion, mindset... There are alot of fear and greed in trading which are from the human beings. You will be asking when should i buy or when should i sell. Should i buy more to cover the lost or just cut lost. There will be alot of distration around you. From your family, friends and so call other gurus.
Example : A novice trader will buy and sell because a friend say the stock will be going up or down. The novice trader just trade by NEWS from the friend.
What your mind concieve, your mind can
achieve
The Human brian is the most powerful tool that God has given to us. It can either make you or break you. If you cant control how your brain think and your emotion, dun trade. Just like when you are unsure of where is the stock going... moving up or down... DUN TRADE!!!
5 simple strategy to control your emotion and mind while Trading:
- Have a Strategy/plan
- Stick to the strategy/plan
- Set profits target
- Set stop loss
- Automate the Trade
If you follow the 5 simple strategy, you will be able to control your mind and emotion. You will be having a fun and stress-free time while doing trading. So have fun and trade happily.
1 comment:
Its correct that there is no place for emotions while doing trading. All the points that you have posted are of great help to me. I am thankful to you for explaining the psychology of options trading.
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