vanathi

Trader's Queries - Trading Psychology!

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Today we are going to discuss about few questions. 1. Why we tend to lose after a winning trade. 2. Why we overtrade after a losing trade. 3. Why we feel confused about our trading knowledge even though we are learning new things daily? Answers for these questions depends on human psychology.
The reasons for losing after a winning trade is a. carelessness b. Emotional imbalance(euphoria state). These two things happens because we are thinking winning is rare. When a rare thing (winning trade) happens we forget to think properly. Again it arises one more question. Why we think winning trade is rare? Because losing trades indirectly make our mind to believe we dont deserve winning trades.
The reason for overtrade after a losing trade is we want to prove ourselves we can do a winning trade. The trade will be more or less like a revenge trade. The fear of failure makes us to think we have to recover what we lost now itself. And this mindset gives more losing trades.
The reason for feeling confused is we expect 100% success trades. Any trading set up/strategy wont give 100% success rate. It is not necessary that we should know everything about trading technicals. Even if we know few techniques well, we can do our trade well. Learning is an ongoing process. It never ends.

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