Trade Stock Successfully With Emotional Detachment

 

Trade Stock Successfully with Emotional Detachment
All Traders understand, to trade successfully and profitably, one must approach trading as a business.
Like all brick and mortar businesses, there must be a specific set of business rules in which one conduct business. Preserving capital sum, ensuring positive cash flow and focusing on capital gains.
Whether you trade in Forex, Future, Commodities or Stock market, all Traders must have a trading rules that includes the element of Fundamental Analysis (FA), Technical Analysis (TA) & Money Management (MM).
The trinity of successful trading – FA, TA and MM.
Since most trades are made manually (will leave auto-pilot trading for another article in the near future), there has been little emphasis on the emotional aspect of trading. One assumed that having a trading plan is sufficient to fatten one’s account.
But being human, there is always an emotional attachment to the trade. The mental roller coaster effect as prices goes up and down.
This is where PA comes into play… Praying Analysis. Each time trade goes wrong, one starts to pray!
Having knowledge of FA, TA, MM and a Trading plans are not sufficient if Traders are unable to control their emotions.
Most traders do not have the discipline to stick to their plans when their mind is at play; the crippling Fear and the possessive greed works well to bring most trading account down.
I have been there, and done that. Each time you have a capital gain from accumulated profit, it gets drawn down very rapidly when you become over confident and allows the heart to manage the orders instead of the head. Making Money can be easier if we trade without emotion.
To have a better chance of success, one needs to be emotionally detached to the trade. Don’t fall in love with your counters, your currency pairs or your commodities.
Trade based on what you your tickers tell you, set your risk and reward and be able to accept the risk represented in $ form. Once the ground work is done, all you have to do, to be successfully in trading is:
SET AND FORGET.
Once you set your trade based on your trading plans, the next best thing for you to do is, move away from the screen. Get a life outside trading, do something else. Set it, forget it, and very likely, you will profit from it.
Happy Trading to you.
For further free upload, please visit http://www.getawaysuccess.com, and subscribe for my newsletter.
About the Author
Lynn Yeo trades Forex for a living.
To get more tips and advice on Trading, click here to Subscribe to my free newsletter at http://www.getawaysuccess.com

Article Source: http://goarticles.com/article/Trade-Stock-Successfully-With-Emotional-Detachment/4674012/

Related More Articles


Leave a Reply