As its a long weekend, market has been Topsy turfy in past 4 trading
session, Let me discuss a real life incident of my student how he was
afraid of trading and how after going through the training he
transformed himself in a profitable trader.The same story repeats with
many traders and hope the example described below can help you in
improving your training.
Band new Trading day has started and
Rahul was ready to trade, As market opened Rahul can see his trade set
up giving a Buy Signal
but Hesitation gripped Rahul’s
tensed hand. He couldn’t decide when to enter this trade. His trading
plan said he had really gone past the entry point he should have taken.
But he had hesitated – what if he was wrong? He decided to wait and
track it just a little longer – just to be safe. This was the story of
his trading life – waiting on the sideline frozen by his fear of
uncertainty.
“If I stay on the sideline, I’ll be safe,” he consoled himself. He watched the price go higher and higher. Still he hesitated.
But
as he hesitated on the sideline pondering this trade, Rahul also began
to fear he was missing out on a profitable trade – he wanted in. He felt
the urgency build. “Just a little more proof”, his tentative side
whispered in his ear. “Get in this trade before it’s too late!” urged
another impulse,
“Sitting on the sideline isn’t getting you anywhere. You’ve got to get in to win.”
This
internal struggle in Rahul’s mind escalated. Finally, to prove he had
the courage to face his fears, he jumped in. The impulse to get in on
the trade finally trumped his fear of uncertainty. In a matter of
moments, however, the price began to tank and hit his stop. Because of
his hesitation, Rahul bought beyond the higher end of his entry range.
He had missed the opportunity of profit. Instead, he took a small loss.
Hesitation was fatal.
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