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
non-toxic cleaning company Winnetka ..The stock market is very unstable at this time going... Read More
If you are a baby boomer, time is not on... Read More
AS BUILDERS BEGIN WORK ON THE FREEDOM TOWER in New... Read More
For weeks, no, months we have been bombarded with nothing... Read More
I'll bet with almost anyone that has stocks or mutual... Read More
What does it mean to short a stock?This means that... Read More
Checked your 401K lately? Going back to about a year... Read More
I continually hear from economists, talking heads, other market letter... Read More
Ever wondered what is a mutual fund? A mutual fund... Read More
Every successful trader has a winning system. There are of... Read More
Picture one of those clubs where only the real heavyweights... Read More
Yesterday I received my monthly issue of MONEY magazine. This... Read More
The Macedonian Stock Exchange (MSE) is not operating successfully. True,... Read More
"If you don't know where you are going, any road... Read More
One of the greatest challenges of investing in stocks is... Read More
If you have been watching the stock market at all... Read More
Hello Inflation, it has been awhile, I see you on... Read More
One of the great "secrets" of successful people is discipline... Read More
During our travel down life's path we come to many... Read More
Since I can remember, and that's a long time ago,... Read More
04/28/2005NASDAQ dropped -12.5% year to date in 2005. S&P500 index... Read More
With an insecure job market, overworked employees, insufficient retirement savings... Read More
Do you own any mutual funds? In an IRA or... Read More
I was recently interviewed for a press release through a... Read More
Everyone who invests in the stock market wants to be... Read More
experienced cleaning professionals Glencoe ..I made my very first investment in the stock market... Read More
People are always asking me when should I sell my... Read More
With the internet such a huge part of our daily... Read More
If you have been dealing with mutual funds for any... Read More
Let me start by saying that...Most online brokers do not... Read More
From the book 'The Stockopoly Plan' by the author Charles... Read More
As one of my regular readers you know I have... Read More
Invest in the stock market for the RIGHT reason, using... Read More
Investing in long-term financial vehicles give you the most gains... Read More
Profitable day traders recognize that momentum trading is among the... Read More
As the man said, "I've got some good news and... Read More
I cringe every time I hear a novice investor tell... Read More
"Buy and hold" is one of the most heralded investment... Read More
The Dow Theorycharles h. dowcharles h.... Read More
I receive emails from Morningstar. This company provides statistics and... Read More
On the 40 year journey through the turmoil of a... Read More
Investors who exclusively use broadly diversified, no load mutual funds... Read More
Among the largest forces that affect stock prices are inflation,... Read More
A colleague of mine just returned from a scuba diving... Read More
After the publication of the first part of this two... Read More
Before you buy another car you walk around the lot,... Read More
Using Swing Trading Strategies and Technical Analysis when Trading Stocks... Read More
Congress recently passed another new law that is supposed to... Read More
A few years back ? it seems like an eternity... Read More
I was recently interviewed for a press release through a... Read More
Stocks & Mutual Fund |