vi. Old habits
Old habits that work
against you in Trading- There are many habits and are
part of our character that may be working against the success in
Trading. But I will take only 5.
i.Purchasing when cheap- Generally in day-to-day life services or
commodities themselves do give benefits/ satisfaction to us, and so when they
are available/ offered at lower rates in the market we tend to purchase or
purchase more of it to increase our satisfaction. For example, vegetable or oil
which themselves has utility, if available cheap, it is good idea to purchase
them at low price. Then this (purchasing cheap) becomes a part of habit.
Now consider SHARES /
Financial product, which themselves do not have any benefit unless we are able
to sale (in future) them at a price, higher than the purchase price. If they
are available cheap, it means no body is interested. So, why should we purchase?
But because of habit (of purchasing cheap) we do purchase (cheap) and lose.
Contrary to it when they are available at higher price (prices going higher),
we feel they are costly (and do not play along) and miss the opportunity of
profit.
ii. Getting success at any cost- From the child hood,
(before we get success) we face many failures. So, striving
for success (despite failures) is hard wired in our brain system. But
this works against us in Share Market, as we cannot accept a single SL a part
of trade and take it as insult, humiliation etc and try to convert position in
the script (not for money but for honour) by
further (forced/revenge) trade, which result in more loss.
iii. Short cut Method-Man is used to make conclusion
about any situation/ person /thing very easily based on only one or two
attributes and is not in habit of making
comprehensive analysis. Thus, we conclude about a person based on only
what he/she wears etc. We conclude about economy from experience of the group
we interact and so on. Our mind is wired to give
quick response and not first detailed analysis and then respond. This habit causes loss in trading as we take decisions of entry-exit based on only 1-2 signals which we can
grasp at that point of time, ignoring all
other factors that are affecting scripts price movement.
iv. Not able to sit idle- गीता कहती है-
कोई भी मनुष्य किसी भी क्षण कर्म (काम) करें बगैर नहीं रह सकता। This nature of human being is
big hurdle in making trade a successful activity. It becomes impossible for us to
sit idle in front of trade screen and do nothing or just wait till we get all
signals OK (which takes generally long time), and then trade. Feeling of
doing nothing bore us and we are forced to act (trade) by mind. Trading is
just like ‘FISHING’ you wait -wait -wait till a fish is stuck in your tackle’s hook.
Thus, trading is a game of patience, you must understand, like not taking
decision is also a decision, doing nothing is also doing.
v.Rule Bound/not having flexibility- It is a good idea to play in
stock market by certain rules and strategy. Else you will be nowhere. One of
them is entry/ exit rules. But following them for
the sake of it without realising reality on screen and acting on it is
counterproductive. Case - A. like in bull rally not taking entry because
entry point is beyond range is losing opportunity or B. when it is clear your
trade has gone wrong and that SL is going to be hit but not
acting by principle of “भागते भूत की लंगोटी” and exiting trade to minimise the loss or
booking whatever profit available.
Follow affirmation techniques to get rid of above negative
habits.
Write down the rules for intraday trading on a cardboard (thick paper sheet)
and stuck it against the wall near trading table. Read the rules a few times
before the market opened and read them repeatedly
whenever you get some free time during the market hours. Someone might
follow all the rules without the aid of all these things. But fresher need some
external help.
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