Frank Kollar, who is a longtime market analyst and trader draws attention to the dangers when we are emotionally affected and trade. “Perhaps the most difficult thing in marketing is uvladeesh emotions, because as oil and water and money with emotions do not mix”
Consider the charts of the stock market. Easy to see the emotional lows when all sell at the same time. It is also easy to see and emotional peaks when all purchased at the same time. Most of these sellers and buyers, however, will lose your money, because all are emotionally affected.
Living in the past:
Very many books on emotions and trading are written and we can sum it all up with these 3 words: Living in the past.
We are all influenced by our emotional victories or losses in the past because all interested in money. However, if you carry such a load around your neck losers (or several losers) transactions, it certainly each transaction in the future will be affected by this load. Will start entering into the transactions later, to prevent this from happening if there is a losing position will go too early, influenced by that can reverse the trend, but the end result will be lost much emotional baggage.
Current deal is only a deal:
The most effective and successful time, you have to watch is current. What happened last week, month or year, there should be no impact on current decisions. Trade is based on the current status and effective strategy depends only on this. In other words, yesterday’s transactions must be out of your head.
Trade with a strategy plan! Expect the market to bet many traps, but stick to the plan. Remember emotional markets wrong you can not find, but a bit later you will find that 80% of participants lost their money. Maintenance strategy helps to when to buy and when to sell. Emotional trading, however, will inevitably lead to a collapse in your trading.