Losing a Part of Profit After Booking Profits in Trade Due to Emotion

General
1

Hi All,

I guess at least some of you might have gone through the phase which I am going through.

I make good profits in a day or carry forward and then loss my capital (a part of it ) owing to greed, indiscipline etc.

How do I get over this dilemma? I did control my emotions few times, but when after exiting trade in profit and when I see the share rising I again enter, only to lose a part of the profit I had gained. (This has not happened all the time but still…)

Can anyone give some better advice to overcome this?

Thanks and Regards

2

Can anyone help please?

3

Once you have squared-off your position, don’t enter again unless your entry conditions are met.

Descipline is the most important aspect while trading, you should follow your rules strictly.

1 Like
4

Sir, thanks a lot. Your posts to my questions are great-- I consider you as a good mentor in understanding the finer nuances of the market.

The thing is: there have been occurrences in the past wherein after squaring after making a profit-- I enter again and made multiples of that profit. But, some days this got even and I lost part of the profits gained, and some days there were losses.

Are there any ways or techniques you practise sir to maintain discipline and control emotions?

Thanks a lot.

5

Being desciplined and controlling emotions isn’t something which comes naturally. You need to lay down rules and follow them strictly, only then will you be able to stay disciplined and control your emotions.

Give this a read, you will get to learn a lot on psychological side of trading.

1 Like
6

Thanks sir

7

I also went through such situation and it took me few days to control myself from over-trading and maintain strict discipline.
So now when I’m in profit, I just turn off the computer and get busy with other things.

8

Thanks sir,

any other tips sir?

9

In second trade, put stop loss= amount of profit made in first trade.

10

Thank you everyone.

11

Hi! I found “Trading in the Zone” written by Mark Douglas an amazing book for emotional aspects of trading. Goal is to eliminate the psychological distress related to taking positions, even when you are in a loss making position.

12

Yes, Emotions are actually the biggest enemies of trading and this is one of the most common mistakes in trading that a trader makes.

Let’s discuss how to control it -

  • We actually go against the trend
  • We are not able to accept losses
  • We sometimes overtrade just because we start getting profits
  • Don’t start without trading plan

Try to control these emotions and you will definitely overcome these mistakes in trading

13

Thanks sir

14

hahah this is particular reason broker holding day profits by new Sebi Rule :smile:

15

@Trader_ninja

I will tell you something no one else will and many will not agree. Its up to you to think about this for yourself.

The “emotions” and psychology in trading is mostly bullshit.

The real reason for loses is because you don’t really have an edge.

if you have an edge, you exploit it and make money. If not you keep blaming everything.

2 Likes
16

Yes. Look in the mirror, and talk to the person in front.

Why are you doing this. Are you not serious or have certain rules to follow. Why do you need some advice from others when you can’t contain yourself.

The answers is with you. Talk to yourself regularly.

17

I had made money mate. I guess I had introspected deeply and know the answer too.

I was seeking better ways to control emotions and mind.

Yes, some trader have an edge with powerful algo based trading, computers, and the like. But, my question doesn’t pertain to that.

So, please refrain from being judgemental.

19

Sure. I had inculcated rules and strategy but like most people,I sometimes misstep-- it doesn’t mean I am being lax though.

If you are irked at giving advice (or don’t wanna give it), refrain from giving it but you absolutely don’t have the right to advise me on not taking advice or asking queries on this forum.

Thank you.

20

I was asking a query and I had got my answers, please refrain from judgemental troll based answers. (Some folks please)

22

Explain to me how was i judgmental.

you asked for advice , if you don’t like the answer, then block me or don’t respond to me.

I m not here to judge anyone. your statement is ridiculous.

Also, you don’t have to respond if you don’t want to.