Physiology of stock market.
 |
1. Controlling Your Emotions:
You have to Train Your Mind like Army's Training. Leave all the emotion and become a Robot Always remember "Learning to trade is not the toughest task, controlling your emotions is"
2 Trade Like
A Master:
When in Doubt Get Out. Full time Trading doesn't mean you have to Trade whole day. You don't have to catch all the opportunities Available in the market. Always have patience to wait for the right moment. And shoot (Trade) when you are sure Le. when your strategy/Setup is giving you permission.
Hierarchy:
In army we
have hierarchy of posts like division, section, platoons, battalion, brigades
each of them are different based on
their skills and experience in the same way we do have certain hierarchy from amateur
to pro trader. its not at
all easy to make million here, things takes time, hard work, dedication and
above all guidance and experience
Divide And
Rule:
Always divide your capital in parts and never ever risk all at once no matter how great the setup is. I always recommend to divide your capital into 10-20 parts and at a time risk only 1 part of it.
Always Have
A Plan:
Always have your trading plan and keep working as per it. Note down all the learning, strategies and key points. Follow them strictly and along with that keep on updating it but only when you found some hole in it. Every strategy is fruitful only when you apply and practice it for longer time
Revenge
Trading:
Revenges does not work in stock market. Never ever have "Getting money back mindset. If you have made losses just accept it as a part of trading and focus on the next trade. It is recommended to change this kind of mindset even if you are an experienced trader with a trading edge. your previous trade should not affect your current trade. I have seen people in stock market who start with 10k and end up losing 100k and the only reason on Revenge trading
7. Attack
With Edge:
An army do not attack unless they have some edge over the opponent the same rule applies for trading.Trading edge comes from navigating the market in bullish as well as bearish sentiment. You must not trade when you don't have that edge. The bull market is when the market is rising and you can have an edge if you are looking to buy stocks. The market is bearish when it is falling. You can have a trading edge if you are about to sell stocks. You must not trade when the market is uncertain, because you cannot have an edge in such a kind of market conditions. You are a trader, so trade only when there are opportunities
"When sharp losses in equity are experienced, take time off. Close all trades and stop trading for several days.The mind can play games with itself following sharp, quick losses. The urge to get the money back is extreme, and should not be given into" ..Richard Rhodes
 |
| If you cannot control your emotions you can't control your money. |
