There are two parts to fixing any psychological problems:
1. Recognizing that it exists
2. Accepting it so you can move on
In trading, this is where it’s so crucial to take responsibility for your own actions because it induces change and you can start making improvements. If you don’t recognize and accept a problem, then you won’t get anywhere!
What are some of these issues ? Here are a few along with their causes and/or effects:
1. Anger over a losing trade – Traders usually feel as if they are victims of the market. This is usually because they either 1) care too much about the trade and/or 2) have unrealistic expectations. They seek approval from the markets, something the markets cannot provide.
2. Trading too much – Traders that do this have some personal need to “conquer” the market. The sole motivation here is greed and about “getting even” with the market. It is impossible to get “even” with the market.
3. Trading the wrong size – Traders ignore or don’t recognize the risk of each trade or do not understand money management. There is no personal responsibility here.
4. PMSing after the day is over – Traders are on a wild emotional roller coaster that is fueled by a plethora of emotions ranging throughout the spectrum. Focus is taken off of the process and is placed too heavily on the money. These people are very irritable akin to the symptoms of premenstrual syndrome. (more…)
Trading was halted in index derivatives on the Stockholm Stock Exchange today after a monster futures order valued at around $69 trillion appeared in the system, according to Swedish business newspaper SvD Näringsliv.
The “trade” was a buy order for nearly 4.3 billion OMXS30 warrants (valued at nearly 460 trillion kronor), an amount over 131 times Sweden’s GDP. The OMXS30 is the exchange’s flagship stock index, and the error apparently caused enough problems to force a closure of the market.
A report in Investment Europe said that despite safeguards, “somehow the order made its way into the order book, causing chaos for traders.”
SvD Näringsliv’s Gustaf Palm reports (via Google Translate):
According to the Exchange spokesman Carl Norell has no order of that size team into the system. Instead, it is about a parsing incurred in exchange system due to a technical error. The order, Norell writes in an email, anullerades, but still remains a problem why the index derivatives market is closed since just before 10 am this morning.
Ego: I never feel the need to prove myself to anyone by saying that I am always right, or that I am some trading genius that has it all figured out, nobody is. But I have one friend in particular that thinks he can trade in stocks, yet every trade he has ever made has been a complete failure, but you could never get him to admit it. He has more excuses and more reasons why he thinks he is still right, even though he constantly losing money. Leave your ego out of the markets, admit when you’re wrong, and stay humble when you’re right.
Impatience: Not having enough patience has forced me to put on some horrible trades, having patience has lead to some of my most profitable ones. Pretty self explanatory.
Trading demands preparation ,concentration and executions.If your trading is getting worse or making no progress it could be a sign of mild depression.Some of the signs of mild depression are :
*Lack of appetite
*Not wanting to do anything
*Not showering ,shaving or getting dressed in the morning.
*Feeling of inadequacies
*Not wanting to talk to friends
*Consumption of alcohol above normal amount.
*Need to be left alone
*Not wanting to talk on the telephone when it rings
This is just partial list.Should the symptoms become extreme please see a physician ,,there after excellent medications that can jolt you out of this condition.In addition there after some homeopathic remedies that just might to the trick.
1)Take a three to five day break and do not watch the monitor or the charts at any time.
2)Begin an exercise program-this increases the production of endorphins in our brain ,which help raise our spirits.
3)Find a hobby to take your mind off your woes.
4)Begin a positive thinking program into your daily routine-such as Tony Robbins-Personal Power Program.
5)Do something to help someone much more challenged than you.Battered wives and battered children,the homeless ,blind elderly people ,etc.
6)Change your diet to eat only wholesome foods with no additives.No soft drinks ,alcohol ,high sugar deserts.Flood your body with water ,fresh fruits and vegetables and small amounts of protein.
You do not need to devote a lot of time to any of these but a little of each one will yield recognizable results.If the conditions gets worse see your physician !
Dear Readers & Traders ,On 8th April -I had written sell ICICI Bank below 976 level with target of 953 in hrs only.
Again on 13th April (Day before yesterday written to sell it ..Remember Kill me )My target below 953 was 930 level.
Now ,Today Just see it made a low of 930.65 in Future and now trading at 934 level.
One of the most important keys is to take action. You cannot be on the sidelines and expect to become an expert.
You can learn the basics of reading the tapes, reading of the charts, and deciphering the news. However, to be really good at it, it becomes an art. It is a skill that you can develop.
The things you need to keep in mind are:
- Be in the game.
- Keep track of your actions.
- Examine you actions and see if they serve you or if they need any adjustments.
- Have an expectation of winning, instead of not losing.
Now ,Suppose break and closes below 930 level too with volumes then I expect stock to kiss 912-907 level.
Just Think ,What else u want in life ?
Updated at 11:45/15th April/BARODA