Day Trader Emotions
In those first trades your heart beat and emotions loose control!
The first trades you make will be some of the hardest. You will have a difficult time pulling the trigger and when you do you will have so much anxiety you will be unable to hold winning positions.
Usually beginners test their ability on a simulator. This allows you to get a feel for using the software you will be using and how to use it. It does not however prepare you in any way for the pain you have to take when you enter with real money.
Quite often people do well on the simulator but poorly when they go live because they are not able to stomach the emotional trauma of watching a position go bad.
The obstacles of the day trader are:
Fear - Fear causes the day trader to hesitate and freeze when positions should be entered and exited. Fear can also cause day traders to take losses,
Doubt - Doubt causes great opportunity to be missed and causes a mind to be scattered and without firm direction.
Greed - Greed will cause day traders to hold onto positions too long often causing profit to turn into loss.
Hope - Hope will cloud the eyes of probability. Hope is not for day traders.
Trading Psychology
1. You must learn to be unattached to money to make it.
2. Having very tight risk management i.e getting out of a position as soon as it goes against you can help in the beginning.
3. To be a good day trader you must be unattached to your emotions and learn to stay calm. This comes after you have truly understood the trauma you are to be subjected to.
Day Trading Tips - Related Resources
Day Trading Rules - Learn some good day trading rules to Keep you right when you trade.
Making a Bad Trade - Getting in way too deep and turning a small loss into something horrific . Prevent common beginner day trader mistakes.
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