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 ..Is really not as important as to how you invest... Read More
Just 30 years ago the stock market was a shadow... Read More
Mutual funds were moderately successful in creating a presence in... Read More
It has fallen upon the consumer to make our economy... Read More
Have you been listening to the talking heads on CNBC-TV?... Read More
How do you make money without picking tops and bottoms?I... Read More
How many times has this happened to you? You're at... Read More
Financial markets provide their participants with the most favorable conditions... Read More
"Buy and hold" is one of the most heralded investment... Read More
Stocks breakout from properly formed bases everyday but many investors... Read More
Every day I see in the financial section of newspapers... Read More
Jack and Jill went up the hill to fetch a... Read More
One of the great "secrets" of successful people is discipline... Read More
THERE'S SOMETHING TO BE SAID FOR standing firm in the... Read More
The Dow Theorycharles h. dowcharles h.... Read More
Should the market turn against you, it is important that... Read More
One of the great "secrets" of successful people is discipline... Read More
We all know that emotions control every decision that an... Read More
Are you attracted to the idea of being in control... Read More
As an investor you will want to check out any... Read More
There is a famous cliff on the ocean in Acapulco... Read More
We need a rabbit!This was a pretty horrible week for... Read More
I go to the Money Show every year to visit... Read More
On November 17 I bought 7 different mutual funds and... Read More
Now that you have some money burning a hole in... Read More
top rated cleaning service Bannockburn ..Do you have a nest egg? You know, a place... Read More
Have you been listening to the talking heads on CNBC-TV?... Read More
Stock investment advice is easy to find. Do you get... Read More
Several times each month I am solicited by various market... Read More
Well maybe that's overstating it a little, but it's certainly... Read More
Humpty Dumpty had a great fall and all the King's... Read More
Every year I go to the Money Show in Orlando,... Read More
If you have been dealing with mutual funds for any... Read More
For years investors have been taught to look into the... Read More
This is the continuing story of our two imaginary traders,... Read More
As I have said many times before in this column... Read More
Mutual funds are doing more and more to discourage investors... Read More
In my opinion, due to the volatility of stock market... Read More
Both the stock market and oil prices rallied recently, which... Read More
How do you make money without picking tops and bottoms?I... Read More
(1) Stock Market is Tough Place to Make Any Money... Read More
For the year 2000 we have seen hundreds of mutual... Read More
Caught in a whirlpool and being sucked under. No life... Read More
With over 6,000 mutual funds available, it may be tempting... Read More
Since I can remember, and that's a long time ago,... Read More
How many times have you said to yourself, "I'd like... Read More
The spring-loaded rat catcher is the ultimate low-tech device invented... Read More
Forget making a profit; instead focus on the income provided... Read More
Robert Rodriguez likes to buy stocks at their lows. When... Read More
If you are going to be a winner in the... Read More
Stocks & Mutual Fund |