Colleagues sellers. This subject is crucial and vital for trade. The market is full of emotion and 90% of all operations is psychology! This fact, as there is one fact that 90% of all traders who already trade to lose money and that 10% actually went bankrupt in a total loss. If the first number is not out of your alarm, then the second group should in any case. But why is it that does so many merchants and encouraged by a psychology? Intelligent people with a high educational level of their trading accounts erode the clock taking a loss after another. So why traders fail? Without an education and a better understanding of the psychology of the market, your chances of profitable trading are profoundly limited! While trade with the instruments that make up this market do not have feelings, are the people that these instruments and human beings are very emotional by nature. Recognizing that the human feelings of fear and greed often drive prices down and it is possible to begin to understand how the right side of the market. Because people are very emotional, they often make hasty decisions that you end up the wrong decision. Each day he is a great battle has led to markets. A battle between the bulls (buyers and the bears (sellers). Bears want top dollar for their shares, while paying the cops as little as possible. To be completed for a transaction, the desire to give a, other conditions. When a greedy Bull gives in terms of a seller’s market, because he only feels the XYZ stock itself, the price rises. If a Bear is like conditions of a buyer’s market , the price plummets. This is not new. It is basic economics. It’s supply and demand. Since buyers and sellers are not uncommon, but it is in their buying and selling decisions on emotions, these emotions peak and finally reverse the trend. For example, if the stock is in an uptrend, it will be a time when the trend evident in all his. At this stage, it often takes a spending spree last as greed in fear of missing the train ahead. It is precisely at this point that the trend is often reversed. The same thing applies to a downward trend. Before a hand touches the bottom there is usually a kind of panic selling that fear takes over and the weak Run For Cover. Once all the weak have thrown in the towel, the stock is free to rise. This problem can again and again to be met. Often, sharing not only because each drop begins sale. He begins to fall, as everyone stops to buy down the price how to attract more buyers. As the price starts to drop, the first sales force and bring the price even lower. It is not until all vendors are removed from the market that the sale ends. However, demand for the stock due to increase again and it attracts more buyers. If you’re ever in a major market like the floor after the 11th September 2001 (11.09), you’ll find that selling pressure has increased significantly on emotional uncertainty of what might happen next examined. Once the sale has been exhausted, prices stabilized and the public began to buy on the market en masse. Controlling emotions As individuals, we must recognize and accept that we have no control or influence on the market, nor the direction of having. And then there are two main emotions come into play and we are aware. Fear and greed! Fear: The problem is that we all succeed, and if we want to make a loss, it is easy to let those losses effect us emotionally for fear of losing even more. In this case, the dealers are from a business where the market reaches the slightest bump, but the whole market is very optimistic and the foundations of a market society, it is good. Thus, instead of waiting patiently for trade to leave, he sold and accepted by the initial loss of fear even more to lose. The fear of the loss may become apparent in the following way. Regardless of rationality, a trader holds hopes on a losing position for too long, it will again. Although new and fundamentals are hopeless, he would not give to forget that this attitude can easily lead to a total loss. In another case, fear can also manifest not fail to miss the boat and go up quickly. This can often by beginners, advice from friends and television, where you can listen to the so-called “experts” or to watch, I should say, “opinion leaders” trying to talk sweet-talk in a trade. A trader sees the market growing rapidly, and confirmation is more news. The excitement of a rising market is booming. Fear of missing, the dealer takes a hasty decision and dives right in a trade. Greed: Euphoria, if you are a winning trade reached nearly as dangerous as being depressed if you have a losing trade. In this case, an operator will actually afraid of losing a profit. He considers himself in excellent position for too long. His art is so good that he can not get enough. He may have made a profit of 100% and now expects to make another 100%. And when his position falls below that mark magic, he still clings to the hope of his calling to return to 100% again before he sells, rather than accepting the States, 90% which is damn good! But what was a profit of 100% can easily become a total loss if you wish, we suppose! I have dealers who have seen their profits erode seen without learning anything. They were arrested at their positions in an almost total loss. Very often, then say, “Okay. My business is now so far as the use of the sale? I dislike him now anyway, I might as well keep my position. “Well, I think in some ways, he is right, because until that time its shares may be worth again used as wallpaper. In another case, fear of loss of earnings may even lead to a dealer to sell a winning trade too early. Once its position is a few percent, it comes out. So beware, fear and greed. These two guys are not good advisers, and they are not the way the trade! And then. As traders we need more impartial. We must accept that there will be losses victories, will all your trading career! Reaching the stage where you can comfortably accept losses, and knowing that you have a good trading system to generate profits, the most time in the long term, is the state we should all strive. Yours in successful negotiation Ricky Schmidt
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June 5th, 2010
meilan
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