Golden rules to overcome from fear & excitement if trading in stock market.

Hi! All

There are so many emotions which a trader is going through when in trade.
Fear, greed, excitement, sad, happy,pray,panic etc.
How to overcome ?
I think everyone want to know that.
For most of traders, it is not their strategy that is causing them to lose money. It is themselves that is their biggest enemy.
Most of the traders are busy with analyzing charts, technical indicators, moving averages etc.
It is good because u have to see which stock is looking good to get in future and finely u got something interesting but unable to decide to get in because previously u had 3-5 losses in a row, fear comes there cause u start searching negatives in that stock.
Same thing reverse in case of 3-5 profit calls in a row of previous of trade u want to get in as fast as u can, excitement comes there cause u r looking only positives in that stock.

When in trade if price moves up like u thought feeling happy, if goes up more feeling excitement, if goes more and more up looking greedy.

Reverse if u r in trade and price move down feeling fear, if moves more down then praying, if moves more down then panic.

Question is still there how to overcome this situation and answer is very simple just start analyzing your trades too other than analyzing charts, why, cause it will give u confidence how?
When u get 3-5-7 profit calls in a row just analyze which strategy u have used in those trades.
When u get 3-5-7 loss calls in a row just analyze which strategy u have used in those trades.
By analyzing this u r easily able to find out which strategy is working for u and which r not working.
Other thing u can add in this that " take a break " for some time.

Generally what u all are doing in normal living if working or doing business and u get bonus or increment or any thing which increase your income, u simply take a off from business or office and doing partying or outing and after that u start doing things normally like what u were doing before.

And in case of no bonus, no increment or no growth in business, u simply take off start searching for new job or business.

May this will help to u all, at least it helped me a lot.

I have more options also to overcome this situation but no time left for now, so in next post I will explain that.

Share your views.

 

It's very important to overcome the limitations and to evaluate trading strategy.

For long and short term investors, partial profit booking would ease our emotions.

For FNO players focusing on small targets such 1, 2 and 3 points will do as it will traded in lots.

 

It is for every one no matter what type of trader he is.

For FNO players it means a lot.

And I don't think any good FNO player will target 1,2,3 point cause I also trade in FNO and I know If I start targeting 1-2 point then majority of time it will hit stop because of volatility and a smaller stop and also the brokerage for FNO is high so by targeting 1-2 point, I am just trying my broker rich.

 

Golden article sanjay.

 

Thanks buddy.

 

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