Five Guiding Principles of Trading Psychology. Don’t Get Suckered by Bad Habits. The Psy-Fi Blog. MarketPsych: Applying Behavior Finance. How to Handle Your Winning Stocks. Portfolio Management How to Handle Your Winners The King of Data Storage --- Advertisement --- Limited Time Offer: Low-Priced Stocks for 2011 Buy beaten down growth stocks priced under $10 in late December, and sell them a few weeks later, after their early January bounce. It's that simple! With the market's pullback/correction/retreat/whatever-you-want-to-call-it coming to an end, I wanted to review a few ways you can go about handling your stocks ... especially your winners. Any growth-stock investor worth his salt cuts all his losses short. So then the question becomes ... how do you handle your winning stocks? On the flip side, however, is profit potential.
Thus, there's a natural "tension" between booking profits and letting them run. That leads me to several general strategies you can use to manage your winners. My take: Unless you're a nimble short-term trader with great discipline, it's going to be tough to make money if you're cutting every profit short. All the best, P.S. Unconscious Influences On Our Behavior. One of the most fascinating, and to me unnerving, results to come out of a lot of recent psychological research is just how much of our behavior is subject to unconscious influence. I for one and I think most people like to believe we are acting deliberately when in fact we often are not.
This article will focus on a phenomenon referred to in research as priming. Consider the following sometimes very large effects: Subjects exposed to words about elderly people walked more slowly and amazingly had worse recall (!) Of the experiment than the control subjects.Subject exposed to words related to rudeness were much more likely to interrupt a discussion than those exposed to words related to politeness.Subjects primed with Albert Einstein performed better on trivia tests than those primed with Claudia Schiffer, but performed worse on general knowledge tests.
All of these effects are unconscious and subjects will often deny they’ve been influenced when told about them. Related posts: Critical Thinking. Trading Psychology Webinar: Profit From the Herd By Not Thinking Like the Herd - Trader Kingdom. What separates the small percentage of successful traders from the rest? Successful traders have a mind-set that allows them to operate in an environment of uncertainty and ambiguity. Many traders have a strategy that could be profitable but they get in their own way.
Some of the common obstacles are discipline, fear, expectations, ego involvement, and emotion management. Join Dr. View Presentation Full Screen View Presentation in Webpage Topics addressed in this live session include: Why trading is unique, unlike any other business or careerWhy most traders hesitate, let losses run, and curtail profitsHow profitable traders think and operate differently Dr. This website is for educational purposes only. THE FINANCIAL PHILOSOPHER. If you want to be successful trader understand the psychology of. Why you need to understand psychology of expertise The primary challenge for novice trader is of building expertise.
To become a better trader you must have a good understanding of psychology of expertise acquisition. What is an expert. Layperson uses the term expert loosely to describe anyone with superior knowledge or skill. Psychologists use the term expert to refer to an individual who is significantly more experienced than others in performing a particular task.
Ability to trade profitably is not about trading knowledge. Domain Specific expertise is key. Trading is a complex skill. In process term if you want to learn to trade well you need to develop expertise in specific task of trading a specific setup. Become an expert in a setup or timeframe What it means in practical terms is you have to narrow down your expertise building process to a method or a set up or a time frame or a instrument. What does it take to be successful trader Psychology of expertise development 1. 2. 3. 4. 5. How to Handle Your Winning Stocks. How to Be Your Own Therapist and Solve the More Manageable Problems in Your Life. Improving Trading Psychology | TradeRelaxed. For the past few months now, I have spent a great deal of time focusing on emotions while trading.
You see a great pattern, a fantastic setup, yet you have fear or are hesitant to pull the trigger, only to aggravate the feeling when you see what a great trade it would have been only “if I had”. A few weeks ago, I stumbled on a fantastic interview video of Mark Douglas called “Mind Over Market”. In this interview, Mark goes over some very important lessons and particularly how to emotionally and psychologically approach the markets. A few very important notes I have taken while watching this video: I cannot stress enough how much it has helped me to focus on the process of trading properly, executing technically solid trades rather than looking at the gains. If you do the above, the gains will come naturally. Please get past the cheesy look of the TV decor and the sometimes excessive and over reactive behavior of the interviewer as the content is priceless.
Happy Trading! TraderFeed. Secrets of greatness: Practice and hard work bring success - Oct. Research now shows that the lack of natural talent is irrelevant to great success. The secret? Painful and demanding practice and hard work (Fortune Magazine) -- What makes Tiger Woods great? What made Berkshire Hathaway (Charts) Chairman Warren Buffett the world's premier investor? Well, folks, it's not so simple. Buffett, for instance, is famed for his discipline and the hours he spends studying financial statements of potential investment targets. Scientific experts are producing remarkably consistent findings across a wide array of fields. To see how the researchers could reach such a conclusion, consider the problem they were trying to solve.
The irresistible question - the "fundamental challenge" for researchers in this field, says the most prominent of them, professor K. No substitute for hard work The first major conclusion is that nobody is great without work. What about Bobby Fischer, who became a chess grandmaster at 16? Practice makes perfect Consistency is crucial. Why?