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
insured cleaning company Deerfield ..I am sure that if you have a brokerage account... Read More
Index Fund Trading can be one of the most profitable...or... Read More
Ever wondered what is a mutual fund? A mutual fund... Read More
A colleague of mine just returned from a scuba diving... Read More
When you become interested in a stock or mutual fund... Read More
Every successful trader has a winning system. There are of... Read More
Mutual funds by definition are a mixed bag of stocks,... Read More
Do you own any mutual funds? In an IRA or... Read More
"There is nothing more frightful than ignorance in action!" Johann... Read More
How do you invest? What do you really pay? At... Read More
A stock market index is a statistical measure of changes... Read More
So you're started trading, you bought some positions with your... Read More
Starbucks earnings are up again and so is their stock... Read More
It is wonderful to be alive in the information age.... Read More
Let's assume that you want to make some serious money... Read More
Sometimes the best way of lowering exposure to risk is... Read More
One of the greatest challenges of investing in stocks is... Read More
The stock market has been in an up trend for... Read More
Mutual funds and brokers are always preaching not to buy... Read More
Congress recently passed another new law that is supposed to... Read More
Reduce your investing and stock market risks by:Setting your sights... Read More
We are already in it, but you can't see it.... Read More
When is a dividend not a dividend?The latest thing "conservative"... Read More
The World Bank claims that some two billion of the... Read More
We learnt the following the hard way! If any of... Read More
top rated cleaning service Bannockburn ..I'll bet with almost anyone that has stocks or mutual... Read More
A 'stock option' is a contract between two parties giving... Read More
Robert Rodriguez likes to buy stocks at their lows. When... Read More
Has your broker been calling you recently with the "great... Read More
For years I have been saying you must have a... Read More
It has fallen upon the consumer to make our economy... Read More
If you have not back tested your trading system, you... Read More
One of the great "secrets" of successful people is discipline... Read More
How many times have you said to yourself, "I'd like... Read More
You may have wondered why your mutual funds have been... Read More
People are constantly asking me why is the stock market... Read More
One of the things people are always asking me is... Read More
You probably have been told that options are risky. Even... Read More
Just about everything you have been told about Social Security... Read More
When it comes to 401k's there is an overabundance of... Read More
Buy high and sell low -- It's not a typo.Millions... Read More
Economists know more about how the fragments of society work... Read More
Are you one of those many people who dread reading... Read More
Wouldn't it be nice if you were only in the... Read More
We all know that emotions control every decision that an... Read More
The greatest stock market myth is the idea that investing... Read More
You read and hear a lot about hedge funds. Unfortunately,... Read More
If you haven't heard of the technical indicator with the... Read More
I mean it when I say that. While plastic silverware... Read More
I have a 2-car garage. There are nice shelves on... Read More
Stocks & Mutual Fund |