Psychology of Trading

New traders are concerned only with making money. They celebrate when their trades are profitable and ignore trades that lose money. This is a bad idea. The path to becoming a long-term successful trader requires an understanding of why the trades lost money. Then it becomes possible to reduce the number of trades that failed. In other words, if you buy call or put options, only to see them expire worthlessly, then you should fair better by finding other strategies than buying options.

Trading Psychology

We feel good when we make profit in market and tend to be superior, and it goes reverse when we lose, we tend to feel bad, ignorant and hurt. Trading impacts our psychology totally. Some traders never sell their stocks or profit when they are rewarded handsomely, they get too much attached to their assets emotionally. Emotions in trading can be dangerous and can make big losses.

Most traders including professional money managers have a difficult time outperforming the market averages. Studies have shown that most individual investors fail to understand this simple principle and tend to believe that their results are better than their actual results. In other words, they believe they do better than the market averages when in fact they perform far worse.

How to Trade Fair

Selecting a trade is an art, getting in it and getting out of it is an another art, as i previously mentioned timing of trade matters the most.This all can be improved through practise, which makes a trader perfect to some extent.Also the fact of, you should minimize your loss in lossing trades and maximize your profits in winning trades.

Emotions in Curve

Keys to Success for the Technical Analyst

Learn how to read charts. This takes time and is never something you can learn overnight. Even though there is no guarantee of success, any edge helps. If you get a buy signal, then it is okay to get along even when you know the signal may be wrong. Even if you dont enter in it, dont regret, market gives you opportunity every day, every week, every month. But your success comes from cutting losses and from studying all the signals. Learn which ones work often and which are no better than break even. Study the results and gain an additional edge by knowing which ones work for you.

Success Mantra in Stock Market is never get emotionally attached to your trades, trade with charts doing fundamental and technical analysis