Here is my new present for you.
If you are aware about your acts, intentions behind your act, causes & effects of your acts then you hold higher probability to get more closer to your trading success.
‘Remember awareness precedes clarity, which precedes choice, which precedes action, which precedes success!’ _ Robbin Sharma
Today let me tell you my intention behind writing this series of How to know what kind of a trader you are. I personally feel that For success in trading you need to know yourself better than anything else. If you can raise your awareness of what type of trader you are then you can make changes to your trading approach in order to avoid the pitfalls of either type of trader.
So let us look at What kind of emotions are there & how does an Emotions Driven Trader behave:
1st Emotion : GREED
Greedy Trader (GT) is always in search of the next opportunity
He/she does not know how much is enough for him for the day, week, month or year
G T takes more number of trades
Most of the time GT is leveraged or overexposed
He gets entrapped at top or bottom cycle of the market
By human nature and his trading style he is indulged in over trading
He keeps on getting in and out of market too often
2nd Emotion : FEAR
Fearful Trader (FT) is a thoughtful trader and need a perfect setup to enter or exit
So, while waiting for perfection, he/she misses the blinking opportunity at quite a lot times
They have best risk and money management practice
They are not quick decision makers
FT’s portfolio is mostly too diversified
They want to know every detail side of the opportunity
As a human beings we are emotional beings. In Share Trading basically one of the two above is the driving force in most of the traders. So unless you don’t know what is your genre you wont be able to cope up with that. And since now you know what type of a trader you are, this knowledge of yours will help to take better decisions and will bring profitability eventually.
Since, as per the Pareto Principle, if we apply to trading, 80% of your profits will come from 20% of your trades & 20 % of your profits will come from 80% of your trades.
alternatively, 80% of your losses will also come from 20 % of your trades and 20% of your losses will also come from 80 % of your trades.
If you just go back one year in your trading account and do the basic math you will find this pattern. Now since you know this you have to check which are the trades where you booked large profits, small profits & large losses & small losses. What was the emotion driving the decision of yours.
I am sure you will be amazed with the fact that these emotions drive you and that is true.
Do comment what is your emotion ?
3 Questions to ask yourself ?
Am I a Greedy trader or Fearful Trader ?
Are my emotions giving me large/small profits or losses?
What do I need to do to manage my emotion?
“It may be impossible to shut emotion out of your trading decisions, but you can master the emotions that hinder your profits” _Frank Kollar
If you also have a Long or short prejudice and want to improve your trading results then I am personally inviting you for my 4 hour seminar on “How to turn your problems into profit” In this seminar I will introduce you to One of such system or mechanism.
In this seminar I commit,
✅How to trade independently with accuracy
✅A unique trading strategy for you
✅A formula to earn 6 figure trading income
✅A surprise gift for traders
Seminar scheduled on
Date: 29th April 2018
Time 8 am to 12 pm
Venue: Hotel Sarkar Residency, Near Cadbury Junction Thane West
Investment Just Rs 600/- (inclusive of breakfast) *
A trading Method
A trading Mindset
A trade record keeper
A money manager
A good market analyser
Though these are just the few qualities, a successful day trading is not just qualities but a process driven mechanism.
A trader once sworn as Day Trader needs to follow some daily routine what is that routine. Know more about this.
Let me ask you bluntly,
Do you have the mental makeup that is required for day trading?
Do you know what kind of trader you are?
Do you know what are the things you need to ignore during day trading?
Have you been day trading since long but yet to taste success in it?
“Successful traders know that making money is more important than being right”