| Controlling Your Emotions When Trading |
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| Written by Shaun Rosenberg |
| Thursday, 15 July 2010 19:51 |
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When trading stocks there are a lotof stressful situations that can occur. You need to be able to control your emotions and make wise buy and sell decisions. If you can't control your emotions then you will probably get freaked out the first time something bad happens and you will end up making a bad decision out of that "freak out."
When trading stocks there are a lotof stressful situations that can occur. You need to be able to control your emotions and make wise buy and sell decisions. If you can't control your emotions then you will probably get freaked out the first time something bad happens and you will end up making a bad decision out of that "freak out." That is easier said than done right? We can all talk about keeping our emotions under control and being smart about it. But how can we actually do this? We are human after all. Here are some free stock tips that can help you with that. 1. Keep Small Positions You shouldn't be risking the majority of your account on any one trade anyways. If you do and you lose that one trade your account will be affected in a big way. But another reason to use small positions is that they are easier to manage then larger ones. There aren't a lot of people who would be concerned about risking $5 on a bet that they believe in. But if the stakes were raised to $5,000 that is a different story. Making large bets is just harder on you and more stressful. And this is of course related to the size of your account. If you have $100,000 then a $5,000 bet would not be too hard to do, but a $50,000 bet would be scary. 2. Step Away From The Computer Sometimes you just need to step away from the monitor and go do something else. Don't spend your entire time watching a trade and thinking about it. Instead place a trade and do something else. Remember your system and don't make a move until your specific rules tell you to. 3. Don't Consider it Money Until it is Taken Out You might take comfort to know that you have X amount in your retirement savings. But that is the wrong way to look at it, because if you should ever lose money in that account it can set you off on a long strain of revenge trading or making stupid trading mistakes in order to attempt to make your money back. If you consider the stock market a game that you really want to win and do not consider it actual money then you will learn from your mistakes when you make them instead of jumping off of a bridge. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. For more on the Stock Market For Beginners visit Shaun's site about the Stock Market Also published at Controlling Your Emotions When Trading. |