|
|
|
|
|
|
|
most probably will. The self-fulfilling prophecy will come true because your mind-set has a siege mentality, which is dedicating more of your energies to defensive trading than to aggressive trading. |
|
|
|
|
|
|
|
|
You shouldn't risk the homestead on any single trade or investment. One of your brokerage firm's criteria in determining a person's suitability for DAET is the availability of trading capital. You shouldn't be trading unless you understand that your capital is subject to market price change (risk) with respect to every trade. |
|
|
|
|
|
|
|
|
Traders do not trade for excitement or passion. They trade for profit. As a DAET trader, you should not be operating from white heat to white heat. Trading should not make you nervous or tense. Pumping adrenaline is not a positive sign. Successful traders, to the contrary, should be severely detached and unemotional. You want to have the ability to look at your own trading position and analyze what went right and what went wrong. If the market has not met your initial expectations, extricate yourself from the position efficiently. |
|
|
|
|
|
|
|
|
Diversify your positions. Do not accumulate ever-augmenting positions in the same stock. The problem with accumulating an inventory is that when you have too many shares of an apparently good stock and are most vulnerable, the stock may turn against you, causing your profits to disappear. This is why you want to view trading as a moving express train on which you can detrain at the next profitable station. |
|
|
|
|
|
|
|
|
Emotional Factors In Trading |
|
|
|
|
|
|
|
|
Will you lose your lunch if you lose money on your first trade? I have closely observed new traders and have noticed how important the control of one's emotions becomes for successful trading. You can't take losses personally. Losses are not a personal affront to you. Even the best traders will have losing days. It is hard enough to control matters within your personal sphere of influence, such as losing weight on a diet. I once went on a diet for two weeks and all I lost was two weeks. |
|
|
|
|
|