Keeping Your Emotions Under Control When Trading
Trading stocks can be stressful
Trading stocks can be stressful. There is no arguing with that. You can make money and you can lose money. There are ups and there are downs. If you really want to succeed in the stock market you have to learn to deal with it. If you don't you will freak out every time something major happens and end up making a very big mistake.This is easier said than done though. We are humans after all. But how exactly are we able to control our emotions and stop them from taking us over?
Well here are some stock tips help you do just that.
1.Keep Small Positions
You shouldn't be risking the majority of your account on any one trade anyways. If you do and you lose that one trade your account will be affected in a big way. But another reason to use small positions is that they are easier to manage then larger ones.
Not many people would think twice about risking $1 on a bet that they believe they are right. However how many people would be willing to risk $50,000 on that same bet. Not many people would, even if they were 90% sure that they were right, it is just a lot more money.
2. Take a Break
Sometimes you just need to step away from the monitor and go do something else. Don't spend your entire time watching a trade and thinking about it. Instead place a trade and do something else. Remember your system and don't make a move until your specific rules tell you to.
3. Don't Consider it Your Money Until it is Taken Out
If you think I have X amount of money in my trading account that I can use any time I want and then you lose some of it you are going to panic and start revenge trading. After all, how dare that market take away your money.
If you believe that your financial future depends completely on the stock market and you lose money then it is really going to hit you hard. Instead consider the stock market just a really fun game that you want to win.
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