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Not being able to pull the trigger and get out of a stock trade is a clear signal of problems either with the trader or the trading system. Consider the typical problems which involve the trader. As with most of us in a modern society, you are raised with the idea that losing is bad. It reflects directly on you. Losing equals shame, which equals pain.A traders natural response to pain is to avoid the situation that causes it and losing trades and the pain that causes is probably the main reason that most novice traders return to the safe haven of passive investing like mutual funds and long investment horizons. The fact is, to some, losing motivates and triggers a reaction to fight back and conquer. But for most, it is just plain easier to deny responsibility and avoid the situation and the risk of pain. To most of us frail human beings, mental and psychological pain is worse than physical pain. On a deeper level, failure to cut losses can signify the arrogant or insecure attitude that the trader can’t be wrong. To be wrong is to be flawed. So, a losing trade not only causes financial pain but also psychological damage to the tender ego. Fragile egos, once they lose, begin to doubt themselves and the trader can become defensive, negative and take on a self-fulfilling losing attitude. Aggressive anticipation and hope turn into little joy and much fear. It happens to everyone. But it is at this point that makes or breaks a trading career. If the internal drive to succeed can overcome the fear of being wrong and losing something of value, then good things can come of it. If not, most intelligent people will indeed cut their loses and leave the trading arena. Learning to handle the stresses of revealing ourselves against a cold, measurable standard is not easy for most intelligent and competitive persons. But to become a successful trader there needs to be particular attention paid to the “head” part of the game. Talk to any successful trader and they will readily admit that at least 50% of trading is mentalemotional. So the question is: what are you doing to develop this important factor in your trading skill set? If your gut response is: “I don’t need it”, then you probably really need it. Stock and Forex Trading Help
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