[arifwise]

these are all wonderful traders sharing. may all of you be bless with abundance of love, health and money.

being grateful with pocketed profit always - feel bless. print out the charts helps and fine tune stop-loss and profit taking. you see your profit taking signals and out you go. live your trading plan and be happy then you live longer as trader

What exactly is your psychology?

In short, your psychology refers to your emotional responses to a given situation…In trading, fear, greed, vanity, pride, hope, jealousy, denial - all these can affect investment decisions. Although your aim in the market is to maximize your profit and minimize your risk, emotions often make this easier said than done.

For example, traders who react emotionally, make the wrong decision – such as the common mistake of holding a losing position in the belief that someday it will become a winner.

This classic mistake is called loss aversion. Loss aversion refers to the tendency for people to strongly prefer avoiding losses than acquiring gains. Some studies suggest that losses are as much as twice as psychologically powerful than gains. Loss aversion compels most traders to hold a losing stock while it plummets downward. This clouded judgment clearly contradicts the trading adage “cut your losses.”

These investors also engage in other forms of irrational behavior, like attributing success to skill, and losses to bad luck. Worst of all, this is just the tip of the iceberg when talking about the other devastating effects of trading using your emotions.