There are some commonly used words,actions,emotions play a role in your stock trading decisions.These points are specifically designed to keep the stock trader psychologically in shape and aware of some of the mental pitfalls that plague all active market players.
Thinking. Too much is not good.This may sound strange to most, but most expert traders have moved beyond the need for thought.It is only if you ask them why they did a certain thing that they have to stop and 'think'.There are some very best traders can't even seem to properly communicate what they do.Perhaps that's because they are' doers' who no longer have to think about 'doing'.
Imagination.If you have one,it could be a problem.Imagination is a quality or element that deals in the world of non facts.But successful traders stay rooted in what is real,actual and factual.They are constantly processing what is, not what may be or could be.They don't imagine,guess, or hope.They just process and react to the facts,second by second, minute by minute,with little to no imagination or opinion.
Fear.Fear is the bane of intelligent action.It not only cripples the mind, which in turn cripples the judgment process, but it erodes the intuitive faculties that become so important to seasoned traders.Fear is a poison, which destroys every virtue required to become great in anything.It is one of,if not the greatest, impediments to achievement.
Greed.This term is best summed up by the saying ,"Bulls and bears make money,but pigs make none".Successful trading is largely a numbers game.Instead of going for the 10,000 Rupee score
all at once, an expert trader will go for 1,000 Rupees score 10 times.The 1,000 Rupees gain will come more quickly,with less risk, and more certainly than will the larger 10,000 Rupees gain.
Information.The less the better.Too much information helps stimulate the imagination, which as you know is not good.Opinions start to form and, before you know it, you have taken on the view of the information's distributor.It must never be forgotten that the importance of information does not lie in its message.Rather,its importance lies in how others will react to its message.
Expectations.Too many expectations or expectations that are too high are sure signs of an unreasoned novice.Overzealous expectations are always owned by those who don't know what they are doing.They are the hallmark signs of those who have not yet experienced the difficulties and hardships that go hand in hand with obtaining success.
Excessive Analysis.Too much tinkering will prevent action and increase uncertainty.Majority of expert traders have a few basic,very simple, ways to determine if they should buy,sell,hold or ignore.They don't over complicate matters.And they are always willing to just 'do it' and see what happens.
Hope.Hope is a dangerous thing,especially for traders.It is the archenemy of those who form the habit of holding losing positions.Hope,in this case,promotes inaction precisely when action is required.Those who hope become blind to the facts, and they will always be at the mercy of those who sell hope for a living.When trading,avoid hope like the plague.
Good trading to all my traders. Muraleedharan. http://currencycentral.blogsp[ot.com