What the heck am I talking about?
It is often said that to grow mentally, spiritually, emotionally and personally that you have to stretch and move out of your comfort zone. I definitely believe in this concept, however... When it comes to day trading, swing trading or position trading stocks, futures, options or forex, going outside your comfort zone can be dangerous!
Let me explain... Say, a trader is used to buying 100 shares of a stock at a time with the average value of $50/share. He/she is very comfortable with putting this amount at risk. They never experience any anxiety and can sleep well at night at this level. However, watch what happens when these traders decide to up their ante to 200 - 300 shares.
All of a sudden they are worried about every tick against them and start riding an emotional roller coaster based on the current price of the stock. At these levels they become much more emotional and their judgment becomes cloudy at times. Now they start making bad decisions that never occurred at the 100 share level.
A good idea is for you to take a good hard think about "what size trader" you are and where you are completely comfortable at. Write these numbers down and force yourself to never deviate from them. When the time does come to raise your bet size up, do it in increments over time. For example: If you want to go from 100 -200 shares, do 120 on week number 1, 140 on week number 2 etc.
I assure you, that by sticking to the concepts in this article that you will make trading a much more comfortable and profitable experience. Be patient and stay focused and the money may roll in at levels you never thought possible!
This article by Dr. Jeffrey Wilde, a trading veteran with 15 years of experience in all major markets. He is a trading coach to over 1400 traders in 38 countries.
For additional info: http://www.win-at-trading.com
emergency cleaning services Glenview ..I know there are a lot of you out there... Read More
I was recently interviewed for a press release through a... Read More
The basis of diminishing return discussions surround such simple notions;... Read More
Why? Because I am going to shatter your conventional wisdom... Read More
All of the talking heads have been telling us that... Read More
I receive emails from Morningstar. This company provides statistics and... Read More
It is finally catching up with them. The brokerage companies... Read More
An investor can find and research the best stock on... Read More
This is the continuing story of our two imaginary traders,... Read More
There are red lights, green lights, blue lights and spot... Read More
The greatest stock market myth is the idea that investing... Read More
With an insecure job market, overworked employees, insufficient retirement savings... Read More
The Shadow knows. There used to be a radio program... Read More
A Guide to Using Stop Loss Orders Stop losses are... Read More
The fight continues to rage among traders who use technical... Read More
I feel that an investment strategy in the stock market... Read More
The following are a list of nine things you want... Read More
There are many important things you need to know to... Read More
In 1960 an engineer working for a watch company in... Read More
A recent cartoon in my daily newspaper showed two guys... Read More
I have been trading for several decades and was an... Read More
This is a rather simple strategy with which I am... Read More
Reach in your pocket and take out that big roll... Read More
Being wrong is OK, but let's not carry it to... Read More
I was devastated!I just couldn't believe it. I was 10... Read More
full-service cleaning Arlington Heights ..There can't be many traders who haven't at least considered... Read More
Someday you may want to retire and continue to live... Read More
If you have been dealing with mutual funds for any... Read More
I am hearing predictions by brokers, financial planners, talk show... Read More
For the last 12 years we have seen the Japanese... Read More
In my opinion, due to the volatility of stock market... Read More
There are formulas for just about everything, but it has... Read More
There is so much involved in developing peak performance, that... Read More
Wall Street has been preaching the doctrine of Buy and... Read More
You have heard about a particular mutual fund from a... Read More
A 'stock option' is a contract between two parties giving... Read More
A few years back ? it seems like an eternity... Read More
We keep hearing about this bear market and that the... Read More
Time to look back2004 is over, now we are in... Read More
Exchange Traded Funds (ETFs) are a group of passive index... Read More
You should ignore analysts on TV, the radio, the newspaper... Read More
'Sector funds are too risky.' 'I doubled my money with... Read More
There are so many kinds of work that needs to... Read More
As GuruFocus updates the stock buys and sells of gurus,... Read More
A stock market index is a statistical measure of changes... Read More
I have a 2-car garage. There are nice shelves on... Read More
If it walks like a duck, quacks like a duck... Read More
If you have not back tested your trading system, you... Read More
Hedge current portfolio positions and gain access to capital resources... Read More
Ever wondered what is a mutual fund? A mutual fund... Read More
Stocks & Mutual Fund |