ST da, I have one interesting observation on trading behavior.
Many times, new traders are not able to give up their bad trading habits like going against the trend or hope/pray mode etc. Although their system shouts at them to exit the loosing trade OR hold on to winning trade they are unable to do so. They will hold loosing trade thinking that markets will reverse or dump the winning trade fearing to keep to much of profit on table. In both ways, they suffer. Sometimes they take impulse trades by going against current trend, against their own trading system and again suffer. They are aware that they are committing mistakes and thus delaying their ultimate success but still they are unable to change their trading pattern. Something like, they are forced by habits to act against their own interest.
What do you suggest? How to come out of these bad trading patterns? Its not about system but psyche or behavioral pattern that leads to losses?
Thanks & regards,
Gaur_Krishna
Many times, new traders are not able to give up their bad trading habits like going against the trend or hope/pray mode etc. Although their system shouts at them to exit the loosing trade OR hold on to winning trade they are unable to do so. They will hold loosing trade thinking that markets will reverse or dump the winning trade fearing to keep to much of profit on table. In both ways, they suffer. Sometimes they take impulse trades by going against current trend, against their own trading system and again suffer. They are aware that they are committing mistakes and thus delaying their ultimate success but still they are unable to change their trading pattern. Something like, they are forced by habits to act against their own interest.
What do you suggest? How to come out of these bad trading patterns? Its not about system but psyche or behavioral pattern that leads to losses?
Thanks & regards,
Gaur_Krishna