Are you suffering from “Need to Be In a Trade” Syndrome

Common Reason for Losing money by most of traders is , We make money is 3-4 trades but lose it all in next 1-2 trades. Trying to be in trade all the time is one of the main reason of not being a profitable trader. Most of the trades want to take part in all market moves and if they get correct 2-3 moves they become overconfident and start going easy on their trading discipline and lose all or majority of profit. The viscous cycle keep on repeating again and again.


The most important trait a trader needs to develop is to know when to be in market and when t be out. There are  times that we need to sit on the sidelines as the markets may not doing what we anticipate.  This could occur because the markets are moving sideways as in current scenario, Nifty is stuck in 200 point range from past few sessions.

Why traders suffers from Need to Be In a Trade

Sometimes traders have trade paralysis — meaning they should have taken the trade but didn’t because they fear being wrong. Case in Point, Just dial we have discussed today morning  , Just dial hit the SL on short side and Did all 3 target on Long side. Most of traders after it Hit SL in morning trade were not able to take the trade on Long side as they had fear of going wrong again. In other words, they have succumbed to the internal fear of being wrong. If the reason a trade was not entered was because the trader felt fear of being wrong, this points to an internal belief that needs to be addressed.  Why is being right so important?

Quite frankly, there is no being right or wrong when trading.  The market either moves in the trade’s direction or it doesn’t.  Traders cannot allow the fear of being wrong to dictate whether they should be in the trade.  Instead, they should accept that anything can happen once they enter.  If the trade setup conditions were met, they must take the trade and follow through unless the conditions change and an exit is identified.

For example, if you are going through a drawdown period and are frustrated, why not trade the cash market, till you get comfortable.This way you can build up your confidence without being afraid of losing a lot of money.

Finally, the real reason to sit on the sidelines is when your trading system are not showing a valid entry but your emotion/gut feel says NO I NEED TO TRADE.  Discipline is essential in these cases because traders tend to get bored.  Out of boredom, sometimes frustration, traders will disregard their trading plan and jump into a bad trade.  In these cases, traders need to remember that sometimes NOT being in a trade is also part of the job.

Trading is about choosing the right trade that has the best potential for working in your favor.


  1. Surendhar said:

    I did Just dial and i made profit! “Discipline is essential in these cases because traders tend to get bored.” —> TRUE.

    August 17, 2016
  2. Bramesh said:


    August 17, 2016
  3. jamwalr said:

    Sir…..All this comes with experience and practice only…In day trading such setups are a regular feature where the market maker first scares the retail trader out of the mkt and then takes up the stk in his direction….By practicing more n more, we shall come to a situation wherein we will be able to spot such traps easily..even today in Just dial when it was hitting low in the mrn, 5mnts RSI +ve divergence was there leading us to believe that reversal was around the corner……And it gave huge reward today..thats why we luv intraday stk trading for the kind of returns they generate……just hv patience….and do more practice….apka number bhi aaye ga

    August 16, 2016
  4. Suresh said:

    Thank you for sharing have hit the nail in the head..i got stopped out in Dish TV and Justdial today in the morning and have not entered them again due to this syndrome of being right or fear of losing money if trade goes against us. Need a lot of practice to come out this problem, as this is one of the best practices to be followed. Thanks again Sir..

    August 16, 2016
  5. Sanjay Menon said:

    Rightly written bramesh ji..iam practicing self control by applying a rule for myself..only 2 trades max in a week or stay out for the week if i earn say 5 to 10k profit from say one or two trades. Difficult as i can feel withdrawl symptoms but has been reducing over time.The other days i spend time in identifying patterns,analysing trades and working on trading systems to manage risks in future trades.

    August 16, 2016

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