Wednesday, 27 August 2008

Don't Be An Angry Trader

It's happened to me, it's happened to you and it's happened to all those who have been trading for a while ..... Getting Angry When We Have:

- just hesitated to push the activation button to place a High Probability Trade (HTP) which we thought had the ideal set-up and the trade has gone to be a real winner! So what do we do next ...? Can we forget about the incident and still keep our composure and carry on trading as normal....?

Unfortunately, as we humans are controlled by our emotions, the pre-programmed chip inside of us takes over our "central processing unit" and buggers up all our previous positive efforts in a matter of a few minutes after having allowed our anger to get the better of us and went on to place a chancy trade to win what we should have won in the good trade, which we have just missed due to our indecisiveness.

(Had I been an sceptic (me..? never!) ..... I would have said "it seems that this emotion chip must have been designed mostly for the benefit of CFD or SpreadBetting companies like the CMC markets, IGINDEX or their Irish counterpart spreadbetter Paddy Power", who incidentally today announced a profit of over 40 million Euros, thanks for the existence of the "emotion chip" inside most of us stock market traders!)

Now, when a trader gets himself to a situation like that and ends up getting wiped out, he must sit down and do some serious thinking as whether he is going to continue trading or give up the business completely -- I would advise all traders and "would be traders" specially those who trade on margins i.e. trade using CFD's or SpreadBetting .... "unless you are completely in charge of your emotions DO NOT TRADE!"

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