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Ignorance towards our study cause loss

Tuesday, November 16, 2010 | | |

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As student of Technical Analysis we are go through various emotional aatyachar of market. This
articles is based on what is emotional level of myself when go through analysis of any stock or indices. Technical analysis is one of my favorite subject.  Initially I had found so simple to go through various trends and indicator.

Myself and my friend both of us build various indicator. Those indicator are found profit sucker in market for few days, as market change those indicator start to give bunch of losses. In those moment it is very hard to accept on emotional side that our indicator start to goes against us.
So as obvious losses start to build higher peak. when I had accept that my indicator is not universal and suitable for current market condition, so many water passes below the bridge.

This is true that we are planing in market with fire. It is hard to go digest losses. You can not learn still you goes in water to learn swim. Theoretical knowledge on shore is not enough to swim in market. Emotional factor affect too much, which comes on stage when you are taking any position to test your study else you should ignore it. In this way studying is very proved as very expensive, but for gain something it should always be prepare for loss few.

It is better to change your way of study. Try to or more indicator to make firewall for each other.Define priorities. how should you are take stop-loss? All those thing first define. Stick to your
stop-loss strategy. for example Your taking three indicator like MACD, MFI,Stochastic. You are set priority
1 stochastic
2 MACD
3 MFI
First market forces stochastic breaks firewall. Then you can set rule that till if market forces break MACD then you will make stop-loss. In this way you can check override to emotional forces. Till those strategy found working for me. If there will any changes, I should inform you.

Have you have any strategy? Then feel free to share with our reader. This experience sharing can help us to go near to our goal of good amount of profit.

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