It’s easy to get excited or anxious after you enter into a trade, especially for beginners like me because every up or down will mean financial gain or loss.

It’s easy to make stupid mistakes and let emotions affect a trade when we have so little and so much at stake. 

It takes a lot of discipline to be able to control your emotions.  That’s what I’m trying very hard to do every day.

• Don’t let greed stop you from selling a gaining position when the indicators says that’s it for now. 
• Don’t let fear stop you from exiting a losing trade if it is really a mistake you made.  It is easier to lose some rather than to swallow a big loss. Maintaining your money is very important to make sure that you are not swallowed up by losses and have no way back.
• Trust yourself and your indicators.
• Be patient and don’t rush into any trade.  Don’t chase.

This entry was posted on Saturday, May 17th, 2008 at 12:39 pm and is filed under Trading. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.