Why Trading is So Hard ?

Rahul slammed the Desk with a Heavy Fist and said the following

  • “What’s wrong with me?
  • “Why can’t I stick to my trading Plan”
  • “Why do i take Impulsive trade again and again ?”

Same old Story is getting repeated again

Rahul has made up his mind after last loss  to stay calm and patient – let the trade come to Him.  But, before He know it, he again jumped into a trade that was against his trading plan and it again lead to a Loss and when the I get gun shy and hesitate to take trades that are valid set ups.  It’s frustrating.

I know what to do, but when I’m really in the act of trading, I fall apart.  I’ve done everything I know to do, but my trading is still stuck here.  I keep falling apart at exactly the wrong time.  I’m beginning to think that maybe I’m the problem.  I’ve been a winner all my life, and losing is just not an option.  But that is what I’m doing.”

Classic Case which should be happening with lot of Readers. The Problem is with our Genes.

Most of traders try to replicate what they have been doing in Real Life to Stock market and fail miserably. Let me give few examples

  1. In Real Life if we get stuck in some place we take help of our friends/relative to help us get out of the mess but in Stock Markets if we get stuck in wrong trade Logically we should cut the trade and move forward. But we try to stick to the trade and think of making profit but end of losing more money. The Cutting of Loss Response Needs to be Learned.
  2. In Real Life we always try to be LOYAL to our family/friends but in Stock market if we try to remains LOYAL to a trade can be a recipe of a disaster.
  3. In Real life we have a predictable nature ie. coming to office, spending time with family everything is predictable in nature but in Stock market events are not predictable, It needs to be learned.

Most of problem with traders is they do opposite of what needs to be done in Stock Market reason for that we need to change the way our Brain Function which can be learnt with practice. Environment of trading is different we need to adapt to it.

Emotions get a bad rap in trading.You’re going to have emotions when trading. Even those trades when you operate with clarity and you’re in the zone and trading well, you may not realize it, but emotions are still present; either you’re experiencing positive emotions, or negative emotions like anxiety are outside your awareness – subconscious. Emotions associated with the fear of missing out or handling loss usually point to deeper, possibly subconscious conflicts, with their own emotions. We need to control our actions not our emotions.

Successful trading required an openness to Uncertainty and Ambiguity

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