5 ultimate tricks to control emotions in stock trading
There is no place for emotional feelings in stock trading still many investors flow in their emotions when the market situation goes negative. First of all, before entering in a stock trading a trader should very well know how to control their feeling while taking any purchasing and selling decision,
Emotions are what? It's a strong feeling that derived from any circumstance which influences the thought process of a person. When I talk about stock market trading many investors lose their emotions that sometimes prove harm for their investment.
There is zero place for emotions in stock trading still many investors flow in their emotions when the market situation goes negative. First of all, before entering in a stock trading a trader should very well know how to control their feeling while taking any purchasing and selling decision, if you are too emotional then anyone can make you fool by diverting your mind. To deal with that you can refer stock tips recommendations from market experts in order to prevent wrong actions and frauds.
Here I am giving five best techniques which can help you to command on your emotional feeling.
1. Learn something new about trading -
Well one of the most important task for everyone, just stop overthinking and schedule some time to sit down and do the hard work to plan your trading - pick up a book, get some coaching, watch a video tutorial to enhance your understanding of the market. This will also increase your capabilities to think practically rather than emotionally.
2. Take a deep breath and try to refocus -
One of the popular and best strategies to refocus on trading goals. You should try a trick that can distract you from the trading world for just a few minutes. Go for a walk or you can go for a short trip, it will refresh your mind and then try to focus on what you were actually wanted and what actually happened. Why has this happened? Just try to analyse the main problem and resolve it using practical data.
3. Do not react to social media's message immediately -
If you see some best trading tips trending on the social media networks or if you receive some tips from any other source you trust most, put that tricks first into your watchlist and examine it later. Like most of the financial market experts provide their best trading tips like commodity tips, forex tips or binary option trading tips on social networking sites to promote their services. These are good but do not start the trade immediately by considering these tips it may harmful for you. Make your own rule to control your strong emotional feelings then you can beat 80% of traders and investors easily.
4. Ask few question -
Fear is an emotional feeling and it also controls your thought process. To manage it you should ask few simple question to yourself -
1. If you watching your trade remain unfold just ask your self - Am I scared?
2. Review your trading strategies
3. Review your trading rules and size.
4. Change your trading techniques time to time.
5. Set a loss limit for your trade -
This is very important for an investor because the loss limit has been proved useful for many years it is an effort to prevent a bad day becoming even worse. After many losing trades, we generally feel negativity for our position. Money management is an important thing, by using limit loss you can control your loss in trading. A trader can manage their money using 5% rule, means any trade you will not risk more than 5%. This rule will help you to control your emotional imbalance.
Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHOR
I am Kirti meliwal, working as Associate financial consultant in Epic Research Limited-the leading advisory firm in India.I have good knowledge about stock market, so i used to write articles on the same.