4 Dangerous Emotional Indicators In Trading

Emotional

Most traders are not undone by their method or system, but rather they are undermined by an internal struggle. Problems arise when the adrenaline starts pumping and emotions come into play; this is the time when bad decisions are made. Pride, Fear, Greed, and Hope are the most dangerous internal indicators to overcome.

Pride screams, “Don’t stop your loss! Prove you are right! It will come back, just wait.”

Fear advises, “Go ahead and take your profit quickly! We can’t let our winners run. Let’s take the small profit now, because the profit could reverse and we will end up with a loss.”

Greed assures, “This trade can’t miss! I am sure it will be a huge winner. Bet your whole account! We will be rich!”

Hope whispers, “I am not sure what a good entry is here, so I am just going to buy this stock and hope for the best.”

Below are some great videos about these emotions by Scott O’Neil. He is President of MarketSmith Incorporated, a stock research tool developed by a team of investment professionals at William O’Neil + Company, a Registered Investment Advisor for Institutional Money Managers. They provide equity market buy/sell recommendations and independent research. Scott is also a portfolio manager with O’Neil Data Systems, Inc. -Forbes

Source: http://www.newtraderu.com/2013/06/28/4026/

2 Comments
  1. Profile photo of sanyi77
    sanyi77 2 years ago

    Internal struggle it is, day after day. Make peace with yourself.

  2. Potero 2 years ago

    I guess finding useful, reliable information on the internet isn’t hopeless after all.

Leave a reply

Your email address will not be published. Required fields are marked *

*

CONTACT US

We're not around right now. But you can send us an email and we'll get back to you, asap.

Sending

©2017 TRADDR Never trade alone! - All rights reserved. Terms of Service. Privacy Policy. Designed by AB Generation

Log in with your credentials

or    

Forgot your details?