Many people think trading depends on technical analysis. From my experience I can tell it needs planning, executing the plan and thought control. We all have trading plan. Lot of trading strategies are available in net and we can choose one as per our risk tolerance. The real challenge comes when the market opens. Ask/bid rate flashes infront of our eyes and at that moment most people start to think "Can I buy/sell". If they think with clear mind and see the price, then they know it clearly whether it is buy/sell.This confusion comes when there is lack of confidence.
Nobody knows whether their trading will go as per their plan or not. We can not control the price action. What we can do is planning entry, targets and stoploss. And we can control our emotions. After entering a trade just check how your mind behaves. Emotions go along with the price and makes the mind to feel miserable or happy. We can overcome this by channelling our thoughts. In the war zone if the soldier start to think whether he can go home alive or not, for sure he cant win the war. If he remembers he have to win the war and concerate on fighting, rather than concentrating on his emotions he can win. Emotions creates blockage in trading. And emotions
cant control the price action.
Nobody knows whether their trading will go as per their plan or not. We can not control the price action. What we can do is planning entry, targets and stoploss. And we can control our emotions. After entering a trade just check how your mind behaves. Emotions go along with the price and makes the mind to feel miserable or happy. We can overcome this by channelling our thoughts. In the war zone if the soldier start to think whether he can go home alive or not, for sure he cant win the war. If he remembers he have to win the war and concerate on fighting, rather than concentrating on his emotions he can win. Emotions creates blockage in trading. And emotions
cant control the price action.
Comment:
Typo error in the title. Its "How thoughts affect our trade?"