There are seven emotions of day trading that can ruin your career. Think of these emotions as the seven deadly sins of the day trading world. In other words, avoid these feelings at all costs.
Day Trading Emotions
Instead of wasting precious minutes, use time between trades to learn more about day trading. If you begin trading to ward off boredom, you’ll take risks that aren’t worth the gamble. Make every moment a productive moment by learning patience and exercising it daily.
In the high stakes world of day trading, any little mistake can feel like a huge blow to your career. Remember that your mood will effect decision making abilities. Learn from your choices and make better ones next time. If you’re working on patience, you’ll get extra practice as you try to stay positive amidst unfavorable situations.
The odds and numbers change so quickly that even the most experienced day trader will experience doubt from time to time. Try your best not to second guess your choices. If you’ve committed yourself to continuing your education and staying on top of the latest news, stand by your choice. Only worry about the changes you can make now. Do not dwell on what you could have or should have done differently.
At times you won’t be able to control your doubt because the market will tell you otherwise. Maybe you traded a stock too soon and missed out on a huge windfall. Maybe you held on to a stock too long. No matter the issue, remember the market is always changing. If you missed out this time, it does not mean you will always miss out. Better luck next time.
When you reach the point of anger, it’s usually because your doubts and fears have been confirmed. Take a deep breath. There’s nothing you can do now. The only thing you can do is learn from your mistake. Right now is the time to walk away for a moment. Never trade in anger.
Recovering from a bad trade is a process. Your first few trades after a loss are likely filled with anxiety. Relax. Day trading can be risky. It would be foolish not to have some anxiety from time to time. However, get back on the horse. Trade again.
After a series of positive trades, your confidence may shoot through the roof. While confidence is usually a good thing, too much can really hurt your career. Always assess risks from a statistical perspective. Do not assume that you cannot lose. Only trade what you would be comfortable doing without. You never know when the market will change, so try your hardest not to let greed get the best of you.
Day trading is more than knowledge in action; day trading is a symphony of personal accountability, education, and awareness. Be cautious about risky propositions, but maintain confidence after making a decision. When you make a trade, stand by your choice and if it fails learn from your mistakes. Remember to learn from all transactions, good or bad. This way no experience is wasted.