Two factors: If you overcome them then there is no limit for money in the Stock market for you.
Fear
We are all humans and one of the greatest emotions that has a huge impact on our trading is FEAR. The fear of loss, fear of being incorrect, fear of other's or fear of losing money.
You as a trader, must learn to be neutral at all time. Try not to get upset when you have a loss, try not to get too happy when you win on a trade. Just remain neutral. Easier said than done of course.
When you lose you panic, but please we want you to know that losing is part of the exciting world of trading. Think of it this way, "when a tennis players hits the ball there is a good chance the ball will not go over the net !". Think of this when you are trading, you will not always hit a winner but with the correct stop loss protection you will have another chance of taking a good trade.
This is what we mean by having a positive psychology. In circumstance when your emotions take control without a trading system you will most likely suffer from action paralysis. No action is taken, often resulting in staying with a losing trade. This can be painful to watch as the price of your stock goes down and down... and then you start thinking why didn't I get out ??
Let us tell you that the financial market is not for second guessing ! Follow your trading plan to the letter, if you don't you are second guessing and this will cloud your judgement and most of all you will start getting into this habit, as a beginner we don't want you to start second guessing !
Please acknowledge that there are only two possible outcomes to any trade - win or loss.
It is extremely easy for fear to kick in, this happens to all us, this is why it is crucial that you stick to your plan. Sticking to your initial plan, will remove fear of taking a good trade, missing out on taking another good trade just because your previous trade didn't work out !
Be patient my friend when the market does not present you with an opportunity. There are hundreds of daily opportunities in the market, wait for right technical set up and don't over trade either.
Remember that you are in control only of the trade, no one is going to tell you when to get in or when to get out. Don't ask others what to do, they haven't done the home work !
Always have a positive attitude when you take a trade, and don't expect the trade to go in the direction you want it to. Just except the outcome of the trade and stick to your initial plan. Play to win and expect results. When you have a losing trade always reflect on what you have done and learn from your experience. Don't go tell everyone remain neutral and be patient until your next trade.
Greed
We are sure that many of us traders have held a particular stock too long and sold out breaking even. Sounds familiar? Greed changes our way of thinking and just like fear we hold on until the market reserves on you.
Remember that when you invest in the market you are making an educated decision based on your technical analysis. Do not use trading as a form of gambling. Getting to know yourself is the key to successful trading; there is lots and lots of money to be made in the markets, but only if you learn to control your inner emotions.
A rule of thumb to remember "When you run out of trading capital your game is over!". Don't worry keep on reading as you will teach you where to set your stop loss and how to maximize profits by taking low risk entries and gaining high returns.
BigGains !!
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