Two states of mind are prevalent in the world of financial trading, these being greed and fear. In spite of whatever you may believe, even about yourself, you and everyone else succumbs to these too powerful emotions. Why? Because it's human nature.
Yes, you will carry these emotions just like any trader does, particularly if you are a new trader. Don't worry, as I said, you're in good company. You simply must educate yourself about how to control them and leave them behind. And, yes, it is possible to do just that.
The easiest thing in the world of trading to do is to listen to the voice in your mind. It tells you to reach for the skies. Why it does this is because you've opened a position perfectly, just at the right moment and then it does precisely as you anticipated it would. Obey this voice at your peril for it is the voice of greed.
When the trade has nudged a little in the direction you anticipated, the same voice will also tell you to go against your planned exit, keep the position open, and extend for a little more. Greed again. You must keep a level head and ignore it.
The problem is that there's an indirect proportion between the factors of your trade going in the direction you anticipate, and greed. The latter always outweighs the former. Even if it doesn't, think in terms of a likely trade reversal, at a faster rate than its trending direction. If you end up on the reversal, fear will envelope you. I know what it's like, so trust me, you don't want to go there.
Sound brutal doesn't it. Well it is, but the good news is that there's a way around all these emotions. You must take time to educate yourself. Besides learning about the technicalities, take time to learn mental discipline too. There is much information available, so be good to yourself and use it.
How would you like to discover more about the techniques successful traders use to make profitable trades?
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Ian Jackson is an authority on Day Trading information, learning the hard way - and now he reveals how you can learn the business too, without all the growing pains.
AFP - The White House on Wednesday defended the Treasury's plan to inject up to two trillion dollars into the economy to rescue the crippled US financial system, after a sharply negative reaction on stock markets.
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