Need to be in Trade Syndrome is one of the main reason for many trading account going Bust. One of the keys to successful trading is eliminating any feeling of ‘needing’ to be in a trade. We had Monetary Policy today, My Inbox was full of question with traders asking How we should trade, What is going to happen, Shall I trade or not etc.
Trading, like gambling, holds the promise of great financial rewards; but with those rewards also come great risks, something many investors tend to downplay.
Trading can be exciting, stimulating, emotional, and engrossing—which can induce reward pathways in the brain. When a day trader takes a profit, or even gets excited about a potential profit, the brain releases “feel good” neurochemicals such as dopamine and serotonin. As such, you can become addicted, just like with casino gambling or using illicit drugs.
The reason for this is Most of Traders believe if they miss ‘this trade’ there won’t be another one like it for a long time, This feeling happens mostly in new traders or traders having less experience. This is not the proper way to think if you want to trade successfully. The fact is, Market is always there but can you trade the market when the next opportunity comes.
Golden Step you can make today onward for developing the proper trading mindset.is Eliminating any ‘pressure’ or need to trade or make money.
Here are some common trading situations in which you can suffer from Need to be in Trade Syndrome, simply reminding yourself that will help you stay patient and in a mindset that’s conducive to successful trading.
Important Economic and Political Event Round the corner
Monetary Policy, Economic Data Release , Outcome of Election Results, Release of Result of company, try to avoid trading during this time if you account size is less than 5 lakh. The kind of volatility seen during this period can blow your account. So when such events are there avoid trading. Remind yourself market will be there tomorrow.
You has Series of Winner
This typically happen during a trending phase,If you start feeling i can know the next move of market quiet easily you are in extreme danger. you really need to stop trading and remind yourself that the market will be there tomorrow. Close up your computer, take a break for a couple days, take the rest of the week off, or else you will lose all the winnings you just made and probably more.
The market isn’t going anywhere, opportunities will be there when you come back.
Exiting a trade too soon
How many times have you entered a good trade and but exited early as trade was not moving anywhere and as soon as you Exit and Boom, Prices just explode as if market was waiting for you to exit. You feel bad really bad. During such period feeling of reentering the trade comes and as soon as you enter and price start falling down. This is a mistake many traders make and lose big chuck of their capital
To help you stop exiting trades too early, remember that the market will be there tomorrow.
Simply reminding yourself I should avoid Need to be in Trade syndrome that the market will be there tomorrow will help you remain patient, and improve your trading.
Mistakes happen while trading. Help avoid them by having confidence in your method, taking a few moments to prepare for each trading day, trading only when focused and healthy, focusing on the current trade and not past ones, and staying within the confines of your strategy.