Need of emotional maturity while Trading?

I have seen many traders whether playing on large spreads or short (intra-day) spreads, all have different characteristics and different strategies all the time.

But one thing that is common are most of them behaving in the same way when trade comes to profit or loss!

When people are free to do what they please, they will imitate each other (Eric Hoofer). The same thing can be applied to the trading industry.

Have you ever been to floor of broking or trading companies, if not then you must go there once, you will see a hell lot of people glued to big LCD’s where rates of different securities are turning red and green. No matter you identify the changing color or not, people faces will tell you how much green color they saw today. People clap on consecutive three or more greens and can be seen tensed on two reds.

Here the role of emotional maturity comes in to picture, if you are emotionally mature then it helps dealing with these kinds of situations. Don’t! Panic if you make loss or don’t give a self-pat when you make profit- this will help you to make better decisions to handle your trades. As this industry is based upon the decisions you make at the right time, better decision making will lead to better profits in future.

Don’t get addicted to what you get by gambling between the numbers of clicks!

People have general tendency that they get addicted to trading no matter it is the time of good opportunity or not, they just marry with the trade. The thought process behind this is simple the more I will trade-the more profit I will make. But this only leads to turning your savings into losses in trading.

Do not try to kiss all the girls!

I don’t mean the exact words, in fact I mean do not put all your fingers in different securities when you cannot handle all at the same time, this will only lead to erupted volcano of losses many times.

Be emotionally mature; enhance your decision making capabilities in weak times.

You will turn yourself into a successful trader and a better human being indeed!