Your ego is your enemy

The biggest mistake any intraday traders commits during its initial journey is to attached with a specific stock or to become egoistic with it. Either in the cases traders loses their money. Let me explain with an example.

Suppose a Trader has bought a stock at a certain price and after his buying he has fixed a stop loss in his mind. Now when the stock just near to stop loss price, it formed an interesting pattern in candle stick. Now the trader is thinking of a reversal and he just changed the stop loss a few points lower. There might be a possibility that after a certain retracement the stock might fall lower.

Sometimes traders do not put a stop loss in the system but in mind and changes the same after a while when he is in loss. Sometimes traders just wait for a reversal and fight with market hoping and praying for its buying price. Even if it comes to a buying price, they change their mind and wait for a while hoping for a profit.

Hope does not work in stock market specially in intraday. You just need to perform the correct action while you are in a trade.

Many traders do average just to minimize their buying price a bit lower and hoping to achieve the same. My advice is, you can average a profitable trade but never average a losing trade. and never ever be egoistic that market will reverse back to your direction and you will make profit.

Averaging can be done in side-way market or till the stop loss point. But it should not be done during any loosing trade. Remember you have to pay your hard earn money if you bring your ego into your trading action and you might be in loss.

Have a safe trade and don’t be egoistic, always remember that you will get better opportunity on the next day if you are in the market.

Comments

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