vanathi

Trader's Queries - Manual for trading - Part 5

Education
NSE:CNXMIDCAP   NIFTY MIDCAP 100
Query : How to over come losses and become a profitable trader?
Answer : This is Part 5. If you are new, refer Part 1, 2 , 3 & 4 for better understanding.
Step 10 : Develop an unbiased mindset. Why it is important? Let’s see how biases affect Person A’s trades.
Example 1 : Confirmation bias.
This happens when we believe what we want to see instead of the fact.
Person A is having bullish view about the market and ignores all the bearish signs the market give him. He goes long even though the market shows the signs of weakness in uptrend. This type of bias gives loss.
Example 2 : Recent bias.
This happens because of the recent happenings which make us to forget the past completely.
Person A had consistent profit for few days and he start to take all the trades with the expectation that it will give him profit only.
Another example is once the market fall continuously for 2 or 3 days, 4th day most traders start their trade with the expectation that the market will fall that day too.
Check whether your trades are influenced by your biased mind and start to see the real facts.
Success Log.For live maket analysis follow me in telegram. https://t.me/Analysis4Newbie
To learn about system trading, https://neomechanicaltrader.home.blog/

Comments

Thankx for Sharing Wonderful examples..with easy explanation.
Reply
thanks for sharing it Madam.
Reply
Very good analysis of biases.
Reply
thanks for the article..
Reply
🙏🙏🙏🙏
Reply
Awesome explanation
Reply
vanathi Arunroyappan
@Arunroyappan, Thank you.
Reply
thanks for sharing it Madam.
Reply
vanathi shivemf
@shivemf, Welcome.
Reply
very helpful mam
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar About Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Private Messages Chat Sign Out