For Active Short term traders there are lot of lessons while trading at Brokerage office.
Of course this is my personal experience.
- Aviod taking advice from VOODOOS
- Lot of opinion floating around which is random impressions . This tends to confuse and panic the trader out of his position at exactly the wrong moment.
- Psychological Capital is more important to a trader than financial capital.
- Cramming more traders to one terminal creates a sense of urgency to trade with shouting of orders by other traders and noise
- Comments on your trades and their opinion disrupts your equilibrium.
- Engaging in social chatter
- Constant phone calls & attending to personal work during market time resulting in loss of Concentration.
1 comment:
If one is trading an automated system, none of these should harm his performance.
In Brazil, trading automation is not currently available, (although in the near future, who knows), specially if you don't have programing skills to develop your own API.
When I day trade, I notice my concentration time is about 3 hours. Concentration is not the word. The question is what you said about "psychological capital". I would call it prana.
You can feel prana leaving away as the time passes and you are daytrading, looking at the screen tick by tick.
You usually start the day "full" of prana, then one can feel the reserve diminishing. When the prana "tank" is near to empty - beware! Then it comes the string of errors, overtrading, etc.
To stand a losing position (even if it takes 5 minutes) makes you lose prana. You can feel it.
One should only trade when his prana is strong.
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