Trading Psychology in Financial Market
Why people incur losses in Financial markets ??? Very Short Informative Points
I hear a lot about losses from many traders in stock markets ,Forex markets, derivatives markets and crypto and every one feels that they have been cheated by the big whales or so. But is it the reality?? Oncourse there can be a 10 percent probability. But the big question is then how 90 percent of the retail or small traders end up in losses?
believe me I learnt it the hard way but I want every one reading this post to just pause and think back why the Losses at first place when we are set out to make Profits.
The below points will completely change your perspectives in minutes,
Why even the greatest minds in fundamental analysis and technical fail
1.Traders always are on a look to find the so called HOLYGRAIL system which never existed in the first place.
2.During profits they come out as soon as possible for the instant gratification of win
3.During a Loss the stay tight and hold on with thier losing positions and greatly erode their capital as well as their Opportunity Time.
4.They never have a real exit plan.
5.Instead of focusing on the Strategy, they are more inclined towards the emotions in the underlying assests.
6.Too much of leverage, another reason for failures
Trading is a very simple processes but are complicated by too much of external and internal emotions.
My plan after 22 years of failing by following the above methods I started trading and investing by very OLD school method, I am shocked to find that this was the basic when I started 22 years ago but R&D on different methods and settings all made me a big loser
Buy (Using any method)
Stoploss (Place a stop Immediately and no change against your positions)
Profit (by Trailing your stoploss)..
I know every body will laugh at me for giving this simplest technique but ask yourselves, do you all abide by this simple method or use very complicated advanced method to again lose money
Following the above simple method anybody can make a decent return on their trading assets
but remember no leverage (if you are a professional then 5 to 10 percent is OK