How many of us go to the movie for the first show on the release day itself? How many of us buy a new brand mobile when it comes to the market at once? When we develop a character based on impulsive actions, it creates a lot of reactions. On the other hand rich people wont jump in to the market when the price moves. They enter at the price which suits their trading plan. Rich people wont buy a thing without knowing its advantage/disadvantage. For example let us say Trader Mr. ImpulsiveAct has 10 stocks in his portfolio. He have trading plan for 6 stocks. One of the stock which he dont have trading plan start to move fast. He enters trade. But he dont have a clue about entry, exit or targets. Obviously he exit the trade with loss. On the other hand Mr. Cool enters a trade when price is moving as per his trading plan. Now its very clear why Mr. ImpulsiveAct lost money and why Mr. Cool gained money. When we learn trading we dont know how traders trade based on impulsive thoughts. After entering to trading only we experience about it. Discipline yourself not to trade/act based on impulsive thought.
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Dear Traders, please write your view about how to avoid impulsive trading. We have already got one interesting method(comment) to overcome impulsive actions :)
" Look before you leap " suits best for trading .
Look whether the chart suits ur trading plan so that the leap which u r going to take will get u to the other end . If u leap ( Enter a trade ) without looking (Trading plan ) , you are not going to reach thee other end and hence get hurt by falling into the pit.
shyampadhi
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Can we keep moving our SL increasing with rise in STK prices ,with keep watching on candlestick patter for final target
My ultimate learning from trading -
My fears are nothing but illusions &
Reality is very simple and boring, sometimes not easy to believe that its possible.There is no "ABRA KA DABRA "
Biggest Risk factor in Trading is Trader.
now Impulsive Trading
To avoid impulsive trading either you make plan and just stick to it no matter what.
OR
Try to look at screen and gain control over yourself i think alot practice will require(I failed in it )
SO I prefer former.
vanathi
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@VikramRajput, Valuable thought :) I agree with you.
one has to have a firm knowledge that the market is not going to go anywhere and it is to stay and hence earnings of the participants. More often than not, people attach themselves to certain scrips and do not encash their profits eventhough their targets are realised. It is always better that one finalises entry, exit and sl before the market opens. During the course of the day, people have to rely more on charts..purchasing a scrip impulsively after knowing the impending supply zones existance is suicidal. If the scrip does not come within their comfort and risk levels, one should let go of the oppurtunity than going for it and burning their fingers.
Look whether the chart suits ur trading plan so that the leap which u r going to take will get u to the other end . If u leap ( Enter a trade ) without looking (Trading plan ) , you are not going to reach thee other end and hence get hurt by falling into the pit.