Friday, December 28, 2012

Some problem trading patterns in Intraday Trading

Day Trading places more emphasis on the psychology aspect. The trader has to take fast decisions under stress which is relatively less in swing or positional trading. In the heat of trading,the trader is prone to errors.
some of the problem trading patterns I have observed and trying to control in my intraday trading are

  1. Placing impulsive, frustrated trades after losing ones.
  2. Failing to take good trades after a losing period by becoming risk averse
  3. Taking more unplanned trades after becoming overconfident during a winning period
  4. Increasing trading size to make up for prior losses
  5. Trading for excitement rather than to make money

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