Participation in the share market are often creates emotional swings, which then ascend up to the heights of hope and excitement, you are thrown in a dreary abyss disorders and disappointments. For example, hoping to make a huge profit, You can watch how to grow your shares, and several minutes later they crash. This is disappointing. It can cause pain. There is a natural human tendency to make the right decisions and avoid losses, so that most traders hard it is to survive a fall in prices. Occurs immediate reaction to close the deal, but it brings emotional pain.
Some traders know when to stand aside until it returns composure. Others can't stay away from the market. The action quickly bounces bounced back; they too will soon return into a position, and it falls again. They sell again, and even more upset when they realize that sold about a minimum of movement. Here, they don't know what to do. This emotional difference, when you are totally confused and uncertain. At the extreme, the devastating buying cycle for maximum and sale at the lows emotions of the trader are characterized by a mixture of anger, frustration, frustration, helplessness and despair. Be sure to allow for the possibility that You may encounter emotional difference and take steps to minimize its impact.
in Addition to creating a confusing combination of emotions, emotional difference leads to a complete collapse of trading discipline. Whenever we enter a trade, we expect that the market will move in our direction. But we must always provide that this may not be, and prepare for such an option. Emotional differential happens when traders do not adhere to strict trading plan. They are included in the deal without clear objectives profit, without prior assessment of risk and a clearly defined exit strategy. Without a clear plan they allow themselves to emotions, not logic. For example, they can enter into a deal without a special reason for the price movement. Their decision to enter can be based only on uncertain instincts. Problem when using intuition as a signal of purchase that You want to compare your ego and self-esteem in one row with their money. Everyone wants to be right and subconsciously believes: "if the deal fails, it proves that I don't know that I do". Therefore, when the deal goes against the trader that he feels? Extreme depression and despair. Because it involves personal, psychological components, feelings of frustration and disappointment especially evident. But trading should be far less emotional. On the contrary, see a man who uses a more objective approach. For example, if as the basis for trading plan uses a technical indicator and present understanding of its limitations, the ego does not stick out. Sometimes indicator works, sometimes not. He has nothing to do with You or your self-esteem. Only a matter of chance, will it work in this transaction. So there is no reason to think ill of yourself, when the deal is not there. You should merely executing the transaction, and when it goes against You, close it. No need to allow sense of dignity and emotions to interfere in the trading plan.
Let your emotions influence trading decisions is one of the most faithful supporters ways accumulation of losses. It is vital to avoid malware emotional surfing. Wisely recognize the emotional swings. Make sure that You enter into a transaction with a clearly defined plan to have not connected any emotions. Entering into the transaction, install the protective stop, and if it works, ridicule yourself, and look for a new opportunity. Let the return composure. It is like a slow count from one to ten, when You are angry. Maybe after some time You will be able to review their trade in a new light. Time spent out of the market, giving You the chance to pacify their emotions. With careful planning You can keep emotions in check and trade objectively and logically.
whether to Follow the hunch
One of the most difficult things for a trader is to learn to distinguish when to limit their intuitive promptings, and when to give them freedom of action. The reason is that most of your insights are born in the subconscious, and have little in common with the cold and calculating judgment, necessary for the best trading decisions.
But from time to time everyone gets inspiration, which is worth to follow, because it represents the sum of all that You have learned about successful in trading, it involves obtaining large profits, which have not seen the majority of other traders.
Here are some rules that will help You distinguish between what inducement to ignore, and which follow:
If it makes sense: Emotional motives ahead of reasons. It's like тысячедолларовую bet on a single number roulette - of course, you can win, but the chances are very little. But others are a result of a more rational mental processes that You don't even recognize, but, nevertheless, they have power. When You learn more examine his own motives, You will find that some of them just take into account the smallest details of everything that You know and meet your deepest understanding of the functioning of the market. In short, even though all your inspiration can be kind of logical jump, some are based on common sense, which You will not find flaws.
If it fits your methods: Most emotional impulses from imaginations, and it would be rash to follow them. But some really match your trading method. They are worth considering because they offer the opportunity to use a different level of knowledge without the threat of trading.
If they involve a small risk: Many emotional motives essence of the variations of the "Trojan horse" - if they are not met, the loss can be extremely high. Such thoughts should resist. But other fully meet your risk management and management strategies. Since there is no additional risk if this intuition is wrong, it's worth checking out.
it is Vital to know who You are, where You've been and where you're going now. This you can understand that intellectually, but emotionally difficult to clearly recognize its place in my life and know exactly what You want to do-wide travel now until the end of life. If the trader does not know the answers to these fundamental questions, he will most probably unsolved problems affect trading results.
Not easy to find answers to past and future psychological unrest. Needs some reflection and understanding that some problems will never be solved completely. So what to do simple trader? When we discussed this problem in the past, many people have asked us how to get rid of the past emotional load. A couple of teachers trading believed that some people can independently get rid of the emotional load. Indeed, it is possible to achieve much, just reading the article about self-improvement on the website. If the same person has entrenched unresolved psychological problems, it is guaranteed some form of professional help. But for many traders key to solving problems with a load of emotions lies in the practice of consciousness. Psychologist Carl Rogers believed that past conflicts of people lying just under the surface of consciousness. If they will simply be quite persistent and allow your mind to think freely, they might identify psychological problems. Basically, you need to consider who you want to be a trader, and impartially compare this ideal what he is in reality.
If there is a mismatch, will be felt tension and anxiety. The solution can be found in the changing goals or life plan. For example, if a person believes that he should be a good husband and father, and the time they spend trade, prevents this, it will feel awkward and is ambivalent towards trading. Something needs to change. He must not throw trade, but he needs to investigate the problem and come up with a solution. Maybe he should allocate a certain time to communicate with his wife and children. The main thing - an attempt to throw these problems head will only lead to trouble. Ongoing psychological conflicts require understanding and solutions. Unflinchingly honest opinion on the aspirations, restrictions and real opportunities can help You get rid of the past emotional load. If You have worked on this successfully, You will be able to focus on trade and develop thinking winning trader.
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