Taking the emotion out of trading. What does this mean? When a trade goes against you its best to minimize losses. Maintain your composure. A lot of traders, when they loose money, start trading like a drunk high on revenge trying to make the money they lost back. This emotion is very simular to gambling. If a trade is not going your way exit the position ( see stop losses from the previous post ) re-evaluate the market and look for a new re-entery point or find a new trade but be sure to maintain your composiour.
Taking the emotion out of trading dosn't only apply to losses but to gains as well. When your stock is rallying and your feeling on top of the world. Your mind is clouded with the high of indestructibility. The next time you feel this emotion take note of it and try to control it. If you ever watch a professional poker tournament on TV you will see a player take down an extreamly large pot and rake the chips in there direction with not even so much as a smile. There are the occasional emotional blow ups but keeping your composure ultimatly leads to future sucess.
Spread some Fluff on your Faviort PR Sandwitch!!!
