Almost everyone thinks they can beat the market by wading into the pool immediately and identifying a trade.
Overwhelming research says they can’t…
But they try anyway.
Why is that?
Simply put, traders lose because their trading decisions are not based on systematic trading methods, but on emotions, the need for entertainment and the blind hope that they’ll make a million dollars without disciplined approach.
Greed, Fear, Hope and Pain…
Emotional trading is the single biggest reason would be traders fail.
But that doesn’t mean you can’t make money by trading; thousands do.
The winners do things differently from losers and hopers.
But first, here are 11 mental and emotional traps you have to overcome (or better yet, avoid completely).
Mistake: You fail when your ego is at stake… Fear of being stopped out or fear of taking a loss. The usual reason for this is that the trader fears failure and feels that he can’t take another loss.
Mistake: You fail when you indulge your need for instant gratification…Getting out of trades too early. Relieving anxiety by closing a position. Fear of position reversal and as a result, feeling let down. Adding onto a losing position. Being unwilling to admit your trade is wrong and hoping that it will come back.
Mistake: You fail when you can’t accept the current market situation...Wishing and hoping: not wanting to take control or responsibility for the trade.
Mistake: You fail when you “need to feel like you’re in the game”...Compulsive trading: drawn to the excitement of the markets. Presence of addiction and gambling issues.
Mistake: You fail when you are feeling unrealistically “in control” of the markets… Excessive joy after a winning trade or relating your self-worth to the markets. Feeling like you’ve figured it all out.
Mistake: You fail when you let poor self-esteem influence your trades…Limiting profits: feeling that you don’t deserve to be successful, to have money, or to make profits.
Mistake: You fail when you don’t accept the unknown… Over-thinking your trade, second-guessing your trading signals: fear of loss or being wrong. Wanting a sure thing where sure things don’t exist. Not understanding the fact that loss is part of trading and the outcome of each trade is unknown. Not accepting the fact that trading imposes risks.
Mistake: You fail when you need complete control… When you’re afraid to trade and have no trading system in place. Not comfortable with risk and the unknown. Fear of total loss. Fear of ridicule.
Mistake: You fail when you have unrealistic expectations… When you’re irritable after the trading day. Giving too much attention to trading results and not enough attention to the process itself and to learning the skills of trading.
Mistake: You fail when you’re desperate… When you’re trading with money you can’t afford to lose, or trading with borrowed money: last hope for success. Fear of losing your chance for the opportunity. No discipline. Greed. Desperation.
Mistake: You fail when you don’t trust your ability to choose a successful system… Not following your proven trading system: you don’t really believe it works. You did not test it well. It doesn’t match your personality. You want more excitement in trading.
And remember, if you really want your trades to work then you have 2 choices.
The hard way: you can try and personally battle to overcome each and every one of these pitfalls.
Or the easy way: you can simply avoid these pitfalls altogether by choosing and following a Trading System with your discipline.
How to completely avoid emotional trading...
Our unique approach: It is typical behaviour for Financial markets to follow infinitely repeating patterns and our EWATSS® adapts to it to give you an edge over others.
Our EWATSS® is an acronym for Elliott Wave Analysis and Trade Selection System.
EWATSS® is a proprietary algorithm (using very complicated mathematics and raw computing power) for powerful analysis of combination of patterns, Elliott Wave theory, price, fractal nature of markets, momentum, sentiment, directional congruence on multiple time frames etc. - to sense very simple buy and sell signals and risk management suggestions.
Meaning no emotional bias…
No fear, greed, “hope” or pain…
It’s clear, concise, systematic, unemotional…
Best wishes
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