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
house refresh service Lincolnshire ..One of the greatest challenges of investing in stocks is... Read More
Is really not as important as to how you invest... Read More
What a great statement!I just heard someone use it in... Read More
You should ignore analysts on TV, the radio, the newspaper... Read More
I would like to share with the reader an article... Read More
If you have not back tested your trading system, you... Read More
Cat or dog? Maybe Zebra. Shucks, I don't know, but... Read More
Humpty Dumpty had a great fall and all the King's... Read More
We learnt the following the hard way! If any of... Read More
A recent cartoon in my daily newspaper showed two guys... Read More
Money management starts with protecting your capital, realizing profits and... Read More
The trading method you employ to approach the stock market... Read More
Day trading is all about making buy and sell decisions.... Read More
THERE'S SOMETHING TO BE SAID FOR standing firm in the... Read More
Look back over the years and try to remember how... Read More
At some time in your life you have been on... Read More
If it walks like a duck, quacks like a duck... Read More
The date October 13, 2000 will forever be embedded in... Read More
There are major differences between trading stocks and trading futures.... Read More
04/28/2005NASDAQ dropped -12.5% year to date in 2005. S&P500 index... Read More
The big bad bear is stirring again. So far he... Read More
There are many important things you need to know to... Read More
Just about everything you have been told about Social Security... Read More
Let's first define insanity. It is doing the same thing... Read More
I was devastated!I just couldn't believe it. I was 10... Read More
licensed cleaning services Lake Forest ..Just about everything you have been told about Social Security... Read More
Mutual funds by definition are a mixed bag of stocks,... Read More
The date October 13, 2000 will forever be embedded in... Read More
Ever jumped out of an airplane? It's OK if you... Read More
I often hear from people, "I don't trade. I invest.... Read More
I have a 2-car garage. There are nice shelves on... Read More
As an investor you will want to check out any... Read More
The World Bank claims that some two billion of the... Read More
There is no question that the stock market is being... Read More
The stock market often closes a week in the middle... Read More
Sometimes the best way of lowering exposure to risk is... Read More
Sometime around 1980, can't remember exactly, there was a flight... Read More
For weeks, no, months we have been bombarded with nothing... Read More
Time to look back2004 is over, now we are in... Read More
It seems that every day I turn on the TV... Read More
As the man said, "I've got some good news and... Read More
Suppose your position has made a big move and you... Read More
Do you have a nest egg? You know, a place... Read More
For the year 2000 we have seen hundreds of mutual... Read More
There are formulas for just about everything, but it has... Read More
Are you paying any attention to your retirement savings? Do... Read More
The stock market is very unstable at this time going... Read More
Let me start by saying that...Most online brokers do not... Read More
Over the past few months, several investment professionals have brought... Read More
In one of my previous articles (Investing in the stock... Read More
Stocks & Mutual Fund |