How Emotional Trading is lethal in Financial Market?

Emotional Trading must be avoided while in trading to make consistent income from trading, and also it is the most difficult part. Once you can control your emotions while in trading, the you are on the way to become a professional trader. Most people crave excitement and entertainment. Singers, actors and professional athletes command much higher incomes in our society than do such mundane workmen as physician, pilots, or college professors. People love to have their nerves tickled-they buy lottery tickets, enter in to gambling and slow down to gawk at road accidents. Trading is a heady experience and can be very addictive. Losers who drop money in the markets receive a tremendous entertainment value.

Emotional decisions are lethal in the markets, that mean if you want to be a professional trader to make consistent profit from trading, you must avoid emotional trading. Emotional Trading will lead you to ultimately lose in trading. You can see a good model of emotional trading by going to race track, turning around, and watching the humans instead of the horses. Gamblers stomp their feet, jump up and down, and yell at horses and jockeys. Thousands of people act out their emotions. Winners embrace and losers tear up their tickets in disgust. The joy, the pain, and the intensity of wishful thinking are caricatures of what happens in the markets. A cool handicapper who tries to make a living at the track does not get excited, yell, or bet the bulk of his roll on any race.  Casinos love drunken patrons. They pour gamblers free drinks because drunks are more emotional and gamble more. Casinos try to throw out intelligent card-counters.

In charge of your life:

When a monkey hurts it foot on a tree stump, he flies into a rage and kicks the piece of wood. Do you laugh at a monkey, but do you laugh at yourself when you act like him? If the market drops while you are long, you may double up on your losing trader or else go short, trying to get even. You act emotionally instead of using your intellect. What is the difference between a trader trying to get back at the market and a monkey kicking a tree stump? Acting out of anger, fear, or elation destroys your chance of success in trading. You have to analyze your behavior in the market instead of acting out your feelings.

We get angry at the market, we become afraid of it, and we develop silly superstitions. All the while, the market keeps cycling through its rallies and declines like an ocean going through its storms and calm periods. You have to understand in Financial Market whether it’s Commodity or Currency or Share “there is no beginning, middle, or end- only what you create in your own mind.

Professional traders warns, “If the market’s behavior seems mysterious to you, it is because of your own behavior is mysterious and unmanageable. You can’t really determine what the market is likely to do next when you do not even know what you will do next.” Ultimately, “the one thing you can control is yourself.  As a trader, you have the power either to give yourself money or to give your money to other traders.” The traders who can make money consistently from trading will approach trading from the perspective of a mental discipline.”

Each trader has his own demons to exorcise on the journey to becoming a successful professional trader. Hera are several rules that worked for me as I grew from am wild amateur into an erratic semiprofessional and finally into a professional trader. You may change this list to suit your personality.

The best way professional traders are doing to avoid emotional trading is follow a winning strategy for their buy sell entries and exits decisions, TradeSmooth buy sell signal software will guide you for most accurate buy sell signal entries with proper exits, with the help this Technical Analysis Software you can avoid emotional trading and make consistent income from trading in FOREX, MCX (India), NSE (India), COMEX (USA), NCDEX, MCX SX, etc. markets.

The Seven Tips to become a professional trader in Commodity, Share and Currency Markets like (FOREX, MCX, NSE, COMEX, NCDEX, MCX SX).

1. Decide that you are in the market for the long haul- that is, you want to be trader even 20 years from mow.
2. Lean as much as you can. Read and listen to experts, but keep a degree of healthy skepticism about everything. Ask questions, and do not accept experts at their world.
3. Do not get greedy and rush to trade- take your time to learn. The market will be there with more good opportunities in the months and years ahead.
4. Develop a method for analyzing the market-that is, “If A happens, then B is likely to happen.”. Markets have many dimensions-uses several analytic methods to confirm trades. Test everything on historical data and then in the market, using real money. Markets keep changing-you need different tools for trading bull and bear markets and transitional periods as we ll as a method for telling the difference. See our blogs regarding how to use Technical analysis software to best and accurate buy sell signals with proper exits.
5. Develop a money management plan. Your first goal must be long-term survival; your second goal, a steady growth of capital; and your third goal, making high profits. Most traders put the third goal first and are unaware that goals 1 and 2 exist.
6. Be aware that a trader is the weakest link in any trading system. So select a better trading strategy with your TradeSmooth Buy Sell signal software for cutting our impulsive trades.
7. Winners think, feel, and act differently than losers. You must look within yourself, strip away you illusions, and change your old ways of being, thinking, and acting. Change is hard, but if you want o be a professional trader in Commodity/Currency/Share markets, you have to work on changing your personality.

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