Overcome your Trading emotions.

There are 4 critical issues pertaining to trading discipline.
1) strategy 2) discipline 3) money management 4) diversification.

Many times impulses are difficult to control because of emotional states.

Overly aggressive investment allocation can even ruin good timing strategy with excessive drawdowns.While overly conservative allocations of capital will not optimize your total returns.

INSTINCT VERSUS MARKET TIMING LOGIC.

Humans are born with basic instincts for survival.They need to protect themselves at all costs.
>Acting without thinking logically.
>Playing it safe.
>Following the masses=look towards for direction.
>Devoid of emotions=react decisively.
>Think outside the box=follow your timing strategy.

"BUY-AND-HOLD" in the 90's.

In the business schools,this old beliefs hard to change.Many investment professionals now admit stock prices based on belief of the masses.Assets of a company play a role in the stock price but the bulk of the price is influenced by popular opinion.The buy & hold strategy,mislead investors.The market don't go in one direction forever.Whether the trend is bullish or bearish.
Never predict where the market is going.Trade market trends.

MANY TRADERS LOSE MONEY TRADING SUCCESSFUL SYSTEM.

WHY.?????PANIC! GREED! FEAR! & PRIDE influence their decisions.
When a trader or investor makes a trading decision based on a news event,fear of losing out on a rally or of losing money in a sell-off,or even the stockbroker neighbour's trading tip,he or she is trading on Emotions.

Trading on emotions,news events,market rallies,etc is basically trading on a WISH.It's merely a gut-feelings.There's no strategic plans and exit formula.Thereby holding until losses becomes painful enough to force the trader to emotionally sell at a loss.

No one can really make money in the stock market without a trading plan.Fine tune your trading plans to capitalize on market trends.Be unemotional,surely you'll be successful.

Those who trade by daily news events,daily or weekly rallies & declines,and TV hype,will "always" end up losing money.Remember,for wvery winning trade in the stock market,there is a losing trade on the other side.Only those who follow a plan consistently make the winning trades.

One of the most important questions you must ask yourself is:

Do you want to be RIGHT for a short time.Or do you want to MAKE MONEY for a long time.

Ignore the news,daily ups & downs.You have no control over them anyway.No one knows what the next day will bring.

Wishing will not help.Watching the financial news religiously will not help.There is just no way to know what will happen tomorrow,or even what will happen next week.

Quotable Quotes:-

"Even if you're on the right track,you'll get run over if you just stand still."
(Will Rogers)

"The future develops in accordance with fixed laws,according to calculated numbers.If these numbers are known,future events can be calculated with perfect certainty."
(Richard Willhelm)