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Continous Change in Emotion Suck your money

Tuesday, October 6, 2009 | Labels: , , | |

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In market when we come in morning of Monday all of your memories for past experience of market are erased. This is due to the Holiday makes you charming and fresh for Monday. So we are ready to think without any burden of past history. Most of trader feel great on Monday to do trade. This is my own experience. As day past and market closed then I have memories for tomorrow on. Next day when I came and trade then I have some history which try to give me guidance of previous day. This is common phenomenon. No matter what ever will be past memory. This will try to give you direction on next day. This convert in experience when it gives continuous path for future.

These are emotion of traders who makes some RICH while some one come on road. Market is play with emotion rather than money. This is very interesting to know some behavior of market and man. If we give close look to market and analysis own behavior. We will find that market is nothing but mirror image of our emotion( This term is very board this reflects image of all trader.) Most of trader ever feel condition, when they release position the stock moves the direction on which they think for. but not moved till they release position. This stock not headed for profit till there position in hand. Most of trader feel they become “BAKRA”(fool!!). Think!! this will happened with you more time than your expectation. This condition happens to all, but we think this is only happen with us. We are in not in condition to ask to other what will happen with them? This due to mob thinks same way. I don't want to teach psychology. I just pointed out that average trader think in same manner as mob thinks. If you are able to away from mob's emotion then you can earn money. That is not easy but it will be achieved by practice. This will great decision to stick to winning small mob's emotion, who are winner always in every trader.

This is not easy. I already mention it. But initially one can do with simple steps.

  • Wait when mob think to buy or sell
  • Soon you realize that mob goes in trouble due to same emotion.
  • Try to make your emotion away from you and become constant.
  • In this way you play with only one variable that market movement, emotion are constant
  • It is better to always catch bus on bus stop, rather than run behind bus. This may cause for accident
  • Same manner your emotion are make you run to catch stock or position
  • In know this steps are gives you only direction. You have to walk with own experience. I am trying to best to put my thinking on net with proper words. If you can make it more simple then your welcome. Try to control emotion when you are in market. Soon you start to make good money in market. This is only truth. Emotion are influenced to break discipline what we are set before come to trade.

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