Home
Option Tools
Services Offered
My Services
Contact Us
Charts
Charts (Premium)
Chart Watch
JCharts (EOD)
JCharts(EOD-COMM)
HCharts (EOD)
HCharts (EOD-COMM)
Forum
Stock Lists
Screener (EOD)
Screener (EOD-Comm)
Breadth Charts
Calculators
Education
Links
FAQs
Advertise Here
Charts (Old)
Login Form





Lost Password?
No account yet? Register
  iCharts Discussions

 FAQFAQ   SearchSearch   MemberlistMemberlist   UsergroupsUsergroups   RegisterRegister 
 ProfileProfile   Log in to check your private messagesLog in to check your private messages   Log inLog in 

Trading Psychology

 
Post new topic   Reply to topic    iCharts Discussions Forum Index -> Stocks
View previous topic :: View next topic  
Author Trading Psychology
mikky
Green Belt
Green Belt


Joined: 16 Feb 2014
Posts: 1442

Post: #1   PostPosted: Tue Nov 18, 2014 9:19 pm    Post subject: Trading Psychology Reply with quote

DEFINITION of 'Trading Psychology'

The emotions and mental state that dictate success or failure in trading securities. Trading psychology refers to the aspects of an individual’s mental makeup that help determine whether he or she will be successful in buying and selling securities for a profit. Trading psychology is as important as other attributes such as knowledge, experience and skill in determining trading success. Discipline and risk-taking are two of the most critical aspects of trading psychology, since a trader’s implementation of these aspects is critical to the success of his or her trading plan. While fear and greed are the two most commonly known emotions associated with trading psychology, other emotions that drive trading behavior are hope and regret.

'Trading Psychology'

For an understanding of trading psychology, consider some examples of the emotions associated with it.

Greed is an excessive desire for wealth. Greed often causes traders to stay in a profitable trade longer than is advisable in a bid to squeeze out extra profits from it, or to take on large speculative positions. Greed is most apparent in the final phase of bull markets, when speculation runs rampant and investors throw caution to the winds.

Conversely, fear causes traders to close out positions prematurely or to refrain from taking on risk because of concern about large losses. Fear is palpable during bear markets, and it is a potent emotion that can cause traders and investors to act irrationally in their haste to exit the market. Fear often morphs into panic, which generally causes markets to decline at a much faster rate than they advance.

Regret may cause a trader to get into a trade after initially missing out on it because the stock moved too fast. This is a violation of trading discipline and often results in the trader getting in too late on the trade.

Successful traders have some common psychological traits that contribute to their success. These traits include –

• Know your limits and do not over trade.
• Risk management is the key to preserving trading capital and attaining trading success.
• Maintain trading discipline at all times.
• Know the difference between not fighting the trend and following the herd.
Back to top
View user's profile Send private message
nameeta26
White Belt
White Belt


Joined: 27 May 2017
Posts: 18

Post: #2   PostPosted: Wed Sep 19, 2018 12:50 pm    Post subject: Hi Reply with quote

Thank you for sharing such useful information. I found this very helpful to implement the trading psychology while trading to avoid making mistakes.
Back to top
View user's profile Send private message
Display posts from previous:   
Post new topic   Reply to topic    iCharts Discussions Forum Index -> Stocks All times are GMT + 5.5 Hours
Page 1 of 1

 
Jump to:  
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
You can attach files in this forum
You can download files in this forum


Powered by phpBB © 2001, 2005 phpBB Group

@MEMBER OF PROJECT HONEY POT
Spam Harvester Protection Network
provided by Unspam