Frequent exits due to stress occur when traders stop out at a stop loss level, close the trade into high volume spikes, or attain predefined targets. All trades should have a stop loss in place. Some traders hold a mental stop while others place physical stops. Traders stay with the market as long as a [...]
Tag Archives: Trading Psychology
Trading needs patience
June 25, 2009 – 12:41 pm
SUCCESS is in great demand for all traders who take a first step in their career. Most traders feel unsure and uneasy initially. They expect success overnight failing to understand that trading needs patience. Any beginning trader does not plan on failing. Many beginning traders never consider failure as one of the possible outcome of [...]
Destructive Patterns in Trading
June 24, 2009 – 9:17 pm
Before we get into the topic of destructive trading, allow me to explain how psychologists assess whether or not a person has a problem with alcohol consumption. Here are ten questions that a professional might ask in order to assess any kind of substance use disorder, including alcohol abuse: 1) Have you found that your [...]
Time Based Trading Part 1
June 24, 2009 – 2:17 pm
Many traders find themselves in a recognizable minefield with enormous intraday losses. Out of desperation, they put on double, triple, and quadruple the normal size of efforts and time just looking for a miracle. The one word that injects fear into the heart of every trader is blowout. This is purely because traders speculate on [...]
Trading Discipline – Do you Have It?
June 23, 2009 – 6:26 pm
Training anticipated creating a particular character or pattern of behavior. Controlled behavior ensuing from such training. A state of order based upon submission to rules and authority. To grow, we need to constantly confront with rules of one type or another. We need to receive rules in proper hygiene way, to address other people, to [...]
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