Saturday, September 26, 2020

Trading Psychology | Become Winner and Successful Trader

Trading Psychology | Inside the Mind of a Successful Trader

๐Ÿ‘‰๐Ÿพ  In this Article we will learn what is Trading Psychology and how it affect decision making process of a trader . We will also discuss significant of trading psychology and important tips and how to overcome from it. With the help of technical charts we will learn how to take correct decision in the live market. 

๐Ÿ‘‰๐Ÿพ After reading this article your will learn " Which Stock to Trade" ,  " How to Trade" , " When to Trade"  and  " When to Exit " perfectly. So , please read full Article it is very useful for a trader as well as for a investor too.


Trading Pshycology , finvestonline.com

What is Trading Psychology

Trading psychology or Investor psychology refers to the trader’s 

emotional and mental state that dictate the success or failure of his or 

her trading actions. Understanding and developing a successful mindset 

is as important as knowledge, experience or skill in determining the 

trading success.


Significance of Trading Psychology

A trader has to make several complex and swift trading decisions day in day out. In order to achieve this with a certain amount of accuracy, traders need good mental balance.

 A lot of times emotions get in the way of the trader making him deviate from his established trading plans which include predefined targets and stop losses. At times, traders end up incurring huge losses as they are unable to manage their emotions during a trade.


Trader’s Mindset during time of a Live Markets

 Trading psychology is different for every trader, as it is influenced by each individual’s own emotions and pre-determined biases. You see a perfect trade setup, but for a moment you hesitate and miss the opportunity.

Consistently profitable traders have found an edge and they exploit it repeatably. Not by doing random things, but by following a method they have practiced hundreds if not thousands of times in all sorts of market conditions.

Important Tips to avoid Emotional Trading Psychology


1) Fear of Loss

Fear is an emotion that a trader generally encounters immediately after placing a trade. Fear creeps in when the trader observes the trade goes slightly against him, causing him to close out his positions. 

When this happens, traders generally overreact and tend to liquidate their holdings causing short spurts of extreme movement in the markets.

Very Important Tips to Overcome from Fear

 1) Convert this fear into  " เค•ाเค• เคšेเคท्เคŸा " which means alertness like a crow.

2) first build confidence and believe in yourself.

๐Ÿ‘‰๐Ÿพ For this first do Paper trading or Mock Trading

๐Ÿ‘‰๐Ÿพ Then trade with very small amount like Rs. 100 or Rs 500 only.

๐Ÿ‘‰๐Ÿพ This will reduce fear of loss and build gradually confidence in yourself

๐Ÿ‘‰๐Ÿพ Note your performance daily 

๐Ÿ‘‰๐Ÿพ From this you can learn and analyze your mistakes.

In 100 or 500 rupees how much you will loose , 10 to 50 rupees maximum . Think that you have given course fee to your teacher.

๐Ÿ‘‰๐Ÿพ 3) Slowly and gradually your confidence and psychology will create in a positive direction. 

Your holding power will also enhance as time passes due to confidence now you have after following above rule.


2) Greed

Greed is the excessive desire for profits. Greed tempts the trader to stay in a profitable trade longer than is fundamentally or technically advisable in an attempt to squeeze out the last penny. 

Greed among traders is generally observed in a bull market when traders trade throwing caution to the winds.


3) Develop and follow a trading plan

you will never commit more than 2% of the total value of your portfolio to any one trade.

Trading plans should also take into account individual factors that could affect your trading discipline such as your emotions, biases and personality traits.


4) Develop and follow a trading plan

You will never commit more than 2% of the total value of your portfolio to any one trade. Trading plans should also take into account individual factors that could affect your trading discipline such as your emotions, biases and personality traits.


5) Have patience

Patience is integral to discipline and it is crucial that you have patience with your positions. Acting on emotions like fear can lead you to miss out on a profit by closing a position too early. Trust your analysis and remain patient and disciplined.

Bajaj Consumer ( BAJAJCON ) | CMP: 178 | Multi Bagger Share | Price Outlook


Points to Remember during Live Stock Market

๐Ÿ‘‰๐Ÿพ Above knowledge was theoretical , But Practically you have to face Real time Fluctuating Stock Market , where thousands of stock are fluctuating up and down in every second. Now what will you do here?


Following points you should follow during live market. 

1) Always remember our ancient tested Shloka "เค•ाเค• เคšेเคท्เคŸा, เคฌเค•ो เคง्เคฏाเคจं " which means be alert like a Crow and Patience like a เคฌเค—ुเคฒा (Herons) in doing intraday or positional trading.

2) You should have excellent quality of concentration , so that market fluctuation did not disturb you from your goal and you should not enter to any wrong trade. 

3) Always do your homework and research very best. Because we can do only our Best Possible "Karma" only and results are not in our hands. 

4)  Try to do research by yourself  and if you have less time to do this then follow or take advice of an expert that you believe is good for you. I saw many Telegram and Youtube channel , maximum of them are fraud , you can loose money on there advise. So select your expert correctly .




Friend I think that I have cleared your most of doubt. If any remaining you can ask me on my Twitter or my Telegram Channel or comment below.

Thanks for your Precious Time.


Finvest Online
Telegram  :  t.me/finvestonline


2 comments:

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