Things one should avoid while trading

Freddie

What are the things one should avoid while trading?

The_Geek_MH

distractions, fear, greed, people who try to tell you they can make you rich, signal services, .. give me a minute I'll think of some more.

illod

I try not to make drastic decisions, for example I see the entering into a deal (but not with my TS), and I always try to weigh out the decision 100 times, and usually in 50 percent of the time I don't open the deal.

Jigler

To my mind, the main thing is to hold your emotions and not allow them to infuence trading decisions, you always need to think with a sober, clear mind.

Malvrid

Laziness, absentmindedness, ignorance - these are all things that drag a trader down, one must work on himself, in order to show good results, so one should do these things, and get rid of them in himself if they are causing him too much trouble.

bsbZen

Most of the traders couldnt handle their emotions. So they are going to martingale or taking too much trades till it goes in the right way also called as ''over trading'' which you should try to avoid that.

Why are people attracted to this?

The answer is simple, it is in our mind and brains.

- Winning trades releases Adrenaline and Dopamine.. This gives you extra confidence. This is a feeling you like and your body gets addicted to so you fight next time to win again and again. But the market will defeat you sometimes and this is where it gets dangerous. So be aware of that please.

- Losing trades releases Cortisol. Especially in situations with high stress. Executive functions that help you with advanced thought processes like strategies, shut down. And the Amygdala, our instinctive brain, takes over. This is known as a ‘’Amygdala Hijack’’ The body makes a chemical choice about how best to protect itself. In this case from the shame and loss of power associated with being wrong and as a result is unable to regulate its emotions or handle the gaps between expectations and reality. This makes you over trade or martingale and destroy your account. So you have to stop yourself from an ‘’Amygdala Hijack’’.

Mine advise would be: Set your manual stoploss at around 2 per day or session. Understand that if you hit your stoploss early, the market are not conducive to your strategy and you will lose more if you continue. Your emotions paralyze you and your biggest enemy. The goal is to slowly desensitize yourself to wins and losses.

For example: 1 win per day is 22 wins per month. So focus at first on 1-2 trades per day and by end of month its many wins. Low volume, high itm trading.

Hopefully this will helps you more with trading.

Greetings,

BSB Zen.

Blueskybinary.com

john8912

Emotions, greed, chaos, fear, gamble-mindedness, rashness...

The_Geek_MH

the hard part is that almost everyone brings emotions with them to the trading table... and that leads to greed, greed leads to hate, hate leads to fear and fear leads to the darkside. You don't want to trade on the dark side for once down its path you walk forever will it dominate your destiny.... until you whip it anyway.

illod

The_Geek_MH said:

the hard part is that almost everyone brings emotions with them to the trading table... and that leads to greed, greed leads to hate, hate leads to fear and fear leads to the darkside. You don't want to trade on the dark side for once down its path you walk forever will it dominate your destiny.... until you whip it anyway.

The_Geek how are you able to avoid opening a deal under the influence of your emotions? Or does that happen to you too?

SanaUllah

Malvrid said:

Laziness, absentmindedness, ignorance - these are all things that drag a trader down, one must work on himself, in order to show good results, so one should do these things, and get rid of them in himself if they are causing him too much trouble.

SanaUllah

the hard part is that almost everyone brings emotions with them to the trading table... and that leads to greed, greed leads to hate, hate leads to fear and fear leads to the darkside. You don't want to trade on the dark side for once down its path you walk forever will it dominate your destiny.... until you whip it anyway.

Trezo

I think that traders, especially newbies, should control their greed.There are many examlpes where traders sidestep their money management and then suffer form it.

yasim

in addin to what was said I guess the most important is not to think that BO are gambling and one should escape trading without a definate strategy

fromBrighton1

Ego, greed, fast short term wealth, tilt.