During trading most of the newbie traders and part time traders face fear and greed. So why do we get fear and greed ? The origin of fear and greed is ego. The need to be right always trigger our ego, once we take the trade. Then ego makes sure that we wont book profit/loss in time. Mostly "type A" personalities face this problem often. They want to come first in everything they do and have a big ego. Most of them are unaware of their own ego. How to handle it? Start doing small activities with out ego. It will reduce ego level slowly. When is the last time you played with a kid and let them wn with out hurting your ego? Also whenever fear/greed comes remind yourself, your ego is trying to take control of you. One emotion triggers another emotion always and at the end you only have to face the consequence. To become a profitable trader, the very first emotion you have to take charge is "ego". Please note there so many other parameters which decides the trader's success. Speaking about ego, how many of you give like to the posts you read in trading view with out getting permission from your ego?
I had this problem in the beginning , but thank God I could reduce it , now it is a little different , but I am still fighting it ,,,,,,,,,
Thanks for your post
vanathi
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@Macai, You have to form new neurological pattern to overcome it. Thank you for the support.
The best way, for me, is to develop cold, emotionless rules. I have a checklist for buying stocks, and even if I know for sure a stock will make me money, I don't buy it unless it follows my checklist. Not trading like an idiot is worth the sacrifice of a single successful trade. This can be used for several different strategies but 1 day/1 week long trades is what I use my current checklist for.
However, I allow myself two swing trades(1 month/year) at a time even if they don't tick my checklist. Nio is one, Starwood Property Trust is the other. Nio has been working like a bloody charm and STWD shows potential once the whole canola oil virus settles down.
And, of course, most of my money is invested(not traded) in a portolio I rebalance anually. I use a more aggressive version of the Golden Butterfly, using REITs instead of gold as an inflation hedge, and I just have 40% in long term bonds instead of having any short term bonds. When it comes to short term bonds, I'd rather just use Ally bank.
NINJA369x
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you know how mind works ha! & how to get likes:):):):):):)!
mcpriceaction
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@NINJA369x, every day when we start trading psychology also start playing with our mind, frankly speaking those (very few in no.) who know how to control emotion can only survive in this brutal market
stay tune on mcpriceaction
Agree with your view , every trader/newbie should understand that trend is your friend otherwise it is your end. JO MIL GAYA WO APNA JO NAHI MILA WO SAPNA. keep your trading as simple as you can. come with strict SL .
@vanathi nicely explained.
Stay tuned to mcpriceaction same is on telegram
Thanks for your post