In trading, we have to avoid these four conditions. These will not help you with your trading carrier. It may give a dark shadow on you. These conditions must be avoided for your better trading practice.
The main mental distracted emotions are given below. That should be controlled by you for better trading strategies.
- Over fear
- Over greediness
- Over expectation
It is the issue that is faced by all of the traders they are very confident about their view and stick on that but if something is going wrong then they can identify the fault that is present in it. Mainly this is called the overconfidence is honest with yourself first. Do not compare yourself with others.
Test yourself continuously. Listen to the experience of other traders especially the point from people you trust. Commitments should take seriously. Remember about your failures. The main definition of overconfidence is to estimate the precision of forecasting in a great sense.
The peoples who have overconfidence they have very lower intervals for the prediction. If someone does not have calibre for forecasting they think about that for a long time. Especially when confidence is relatively high, we have got extra energy in you but if it fails, lost all the hope in you. This is a common matter but we have to overcome that for a great future. Please away from overthinking, make happy moments for you, it makes a refreshed mind. Sometimes stop waiting for perfection. Change the views over time. Groom yourself, think positively. Stay healthy.
The fear is the most dominating emotion for mankind because at any extreme there must be a functional radiance happened around. We learn lessons from our first failure. A man who learns lesson from their failure is stronger than a person without fail. Don’t afraid to fail, It is founded that ways with bounces are faster than the straightway. Fear of failure will block us doing things and makes us away from achieving our goals.
Fear is closely related to emotions such as horror, anger, panic, and sadness. Another hypothesized set of emotions includes stress reaction, anger, anxiety, and fright etc. But anxiety is perceived to be uncontrollable or unavoidable. Fear and anxiety are different from each other. Anxiety occurs as a result of threats.
Influence of fear in trading
Fear is a reaction in the brain that starts and end with a stressful feeling. If you did not clear out with immediate action that will make a negative reaction in you. If your work on several things at once, not really focusing on any one of them. It may cause the distraction of mind and badly affected your trading carrier. Even if your work is pretty good enough don’t be conceit in that. If you do so things will really start going in the wrong way. You were thrown from big ‘success’ to the average of ‘success’.
The major mindset issues are symptoms of fear of success. It does not mean that you don’t want to be successful. It is very important to look fear of success at a deeper level because your subconscious is running what you do up to of the time. An unavoidable emotion in all human being is fear. These types of fear will have a huge impact on our trading. There exist a different kind of fear, such as the fear of loss, the fear of being incorrect, the fear of other’s or fears of losing money.
Accept the reality
All traders mind should be kept neutral because if any bad condition occurred you can cover up it with the positive attitude of your mind. A trader should always be capable of controlling their feelings. Try not to get upset and try not to get too happy when you have a loss and when you win on a trade respectively. Always try to stay neutral.
Losing is part of the exciting world of trading. It’s a truth. So don’t be scared when you lose. Think about a tennis player, when he hits the ball there is a good chance the ball will not go over the net. Think in this way when you are trading you will not always get profit. So first protect yourself with correct stop loss value. So that you will not miss another chance of taking a good trade.
This is positive psychology. You will most likely suffer from action paralysis if your emotions take control without a trading system. Often losing trade will result by taking the wrong action. You are painfully watching the price of your stock goes down and down. And think lately why didn’t I get out.
How to control
it is very easy to give up fear from your mind. Once it is done then you can stick to your plan. If your first trade didn’t work out you will miss out taking another good trade just because your mind sticks to your initial plan. If you can’t remove fear from your mind then it will become crucial for you to take a good decision. There is a vast area of opportunities present in the market. Be patient, wait for right technical set up and don’t overtrade either.
You are aware that greed will negatively influence your trading. That recognition is a turning point toward resolving the issue. To keep the emotions away from you, you have to put a definite plan in mind. Keep it in your mind then you can get a reference it prior to place the trade. You wanted to get that idea about the segment and it will help you to put an effort during the trade time.
Then, only take trades that fit that trading plan exactly. If the trade does not measure up, don’t take the trade. You only want to enter higher probability trades. Trades based on your pre-determined plan. One who strictly follows both of these rules can prevent his/her account from risk as well as can maintain an account at a desirable and predetermined level of profit. Over leveraging one’s account is one of the primary faults embraced by a trader influenced by greed.
It is another fact that makes you in trouble. That is over expectation. When you more expecting for something it will be badly affected your confidence level. The expectation should be in a great manner that makes you feel distracted. You have to minimize your expectation for trading success.
These four factors should be reduced during trading for better results.
some good reads
- Why do most traders fail in trading?
- Trader’s health tips from the best buy sell signal software and support system
- 10 Reasons why you should start trading
- An open letter to you from Alertel daytrading support buy sell signal ssytems
- 36 Awesome features of Alertel Buy Sell Signal Software
- Three rules to follow to be rich if you are using Alertel buy sell signal software
- How to trade stocks and commodities with Alertel automatic buy sell signal software
- How to eliminate risk and make profits with Alertel V series automatic buy sell signal and technical analysis software for trading stocks of MCX NSE and FOREX
- Making Money out of Stock Market
- Making Money out of Stock Market