Hi,
trying to build my own psychology & fellow traders,this i learnt from one YT channel.
While buying 5000 rs item in a mall or for example, 1000 rs shirt in a mall, you try 2 or 3 sample shirt, check with your spouse/friend , spend hours to select among 2 or 3 shirts & then finally you decide to buy 1 out of them.
Then why while buying a LOT worth lakhs of Rs, you directly go & buy it. Why you did not spend time to see fundamentals, technicals of the stock ?
Why you did not see the current economic situation, trend, PA, S &R etc ?
one more, when you are in profit, you book 3 -4 % profit but when you are in loss who gave you right to hold the position till 8-10% loss ?
The best way to trade.
Excellent
Trading psychology is a response which generates a reward i.e. a person will be motivated to repeat a response if he or she gets a reward for the same.
We humans eagerly crave predictability and struggle to find patterns, even in its absence. Therefore, the trading needs to be mastered. To master you need to know about greed, fear, managing trades, portfolio management and 2 percent rule.
Here is something I find a good read -
Mastering trading psychology and Money Management to trade effectively
Who has high chance of success in this field?
1.A person with finance background or
2.A person having MA in Psychology?
degrees & certification has less to do with being a successful trader.
One can enjoy immense success in a high position job, but can fail miserably as a trader.
Trading is not just about winning. The closest trading can come to is athletic sports. You try to get the best out of you each time. And you need to train and have tremendous discipline.
You work on yourself removing self doubt knowing you can get beaten most times. Yes takes time and never ending dedication to excel in any sporting field. Sounds familiar.
