The money’s made in the sitting and the waiting, not the trading… Jesse Livermore
“The snake which cannot cast its skin has to die.”- Friedrich Nietzsche
“There are a lot of shoes on the shelf; wear only the ones that fit. If you’re extremely confident, taking a loss doesn’t bother you.” – George Soros
Do you go through any of the below thoughts when you are trading
- No time to wait for the right signal, You Buy is at 8000 but Nifty is trading near 7998 so lets take the trade. It looks like it might work, so I am going to take the trade not waiting for 8000 to come.
- Not waiting for the target, as soon as you see the small profit you just want to go out of the trade and book small profit. I have a small profit and it might turn around and go against me, so I am going to get out now.
- My position went against me, and it looks bad so even though it did not hit my Stop loss , I better get out now.
- The markets are running away without me.I need to trade anyhow Just about anything should work and the most important issue that I don’t miss out on this great move, so I am going to just trade.
- This setup looks good and I just made some cash on the last two trades and am feeling pretty good, so it’s OK for me to deviate from my system, and get in now.
- I lost a lot on the last two trades, and am feeling pretty lousy about the losses so I need to get into something and maybe double up now to try to get it back now.
- I don’t have time to wait for setups since I can only trade a couple of hours in the morning before I go to work, so I have to do something now.
- I am feeling so bored right now and just need to put on a trade in order to do something.
The lion is an extremely successful predator not because of its size or power but because of its endurance and analytical skills. Patient and very calculative, it presents us with the most important qualities of a good trader.
If you make any of the above excuse to take a trade, its high time you should stop trading as your emotions are overpowering you.