Query : "Will this stock go up? I have bought it at this price." Most of the days I get this question in different form. Answer : Not only newbie's, but also traders face this uncertainty. After buying or selling the stock they get anxious whether the price will move as per their expectation. Unless we learn to deal with uncertainty, we cant develop trading discipline which is very important for a successful trader. 1. Plan your trade and have it in written form. 2. The written plan should have proper entry, exit and stoploss. 3. When you feel uncertain, check your trading plan. See what it says. 4. You can not control price, but you can control your uncertainty feeling. Be aware of it. 5. Say to yourself, "I have a solid plan. If price moves against my plan I have stoploss to save me". 6. Dont run away from uncertainty, face it with certain trading strategy and plan.
In times of uncertainty we must apply Heisenberg's uncertainty principle and chaos theory. To apply these interdisciplinary theories you should know advanced calculus and with some basic understanding of Freudian psychology. Its an added advantage if you have a Nobel prize in economics, PhD in Neuroscience and Post Doctoral degree in Statistics and Nuclear Physics.
Otherwise its not possible to trade during uncertainties.
vanathi
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@trex88, Everybody cant get Phd or nobel prize. But we can control our mind by meditation, so that it will be easy to handle uncertainty.
rahul.u.bhagwat
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Best Advice. Usually Nobody wants to book loss hence they continue with loosing Trades. However we need to know that the Analysis & Decision taken before the trade are usually more clear & clean compared to taken with uncertainity. Hence always follow your trading plan. Many traders like me learn it only the hard way.
But once you learn & folow it, It turns into life saving advice & profits follow seemlessly.
Truly, Market teaches you absolute discipline, and nobody without a Discipline can be a Disciple of the Markets.
vanathi
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@Rahul.u.bhagwat, I agree. Thank you for sharing your view.
RJUN
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Right, the more you scratch your trades, the more you are decreasing your Strategy's Edge, Ending up losing ur then had returns.
vanathi
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@RJUN, I agree. This uncertain feeling makes a trader to find different strategies messing with the original strategy.
Otherwise its not possible to trade during uncertainties.