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Friday, December 3, 2010

Trading Psychology- How to Overcome Frustration in Trading

Gaining and losing is common in trading. Sometimes the trader may gain and some times he may lose. Whenever he loses, there might be a frustration at least in the lowest fraction. But the trader can not analyze and cannot take right decisions in a frustrated mindset, and may loose more. The trading psychology management of the trader is very important here. The following are some ideas to respond to some events instead of being frustrated about them, such as:
  • Change the obstacles as opportunities: First you need to accept that you are responsible for losses. This helps you get things in control. Question yourself, if you have any failure and get frustrated, on how to learn from this experience and what not to repeat to avoid further losses. Think about ways to improve your trading. Try to learn something from every event, that can be beneficial for you in future.
  • Make a trading plan: Whenever you create a trading plan, put a lot of time and thorough analysis. You should honor and commit for this plan. Stop to react to random movements in market and start responding to the market through principles. Set them up in your trading plan and make it a personal goal. Respond to the opportunity offered by market by taking it.
  • Imagine: Anticipate how the market can be the next day by your analysis. Consider different alternatives. Think about alternatives even if you guess that market is on pace. Here, you will need to prepare according to the market by anticipating things.
These are some ideas that will help you in overcoming frustration while trading.

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