Trader's Queries - Trading Psychology Part - 3
Updated
Doing paper trade before and after you become a trader is completely different. Before you become a trader, you dont know about fear, greed and maximum draw down for your trading strategy( Draw down is the loss of your capital after a series of losing trades). You have a trade set up and you test it by paper trading. After becoming a trader you know how you feel after profit/loss. You know how powerful fear and greed is. And you know that you have not tested your trading strategy's maximum draw down.
Doing paper trade after becoming a trader may be because of not following your trading plan properly. You may think your trading plan is wrong and you want to find some other suitable trading plan. The real thing is your mind dont know how to handle fear or greed. You should feel confident to overcome fear and greed. You have to find you strength and weakness in trading. You are the only one who can find it. Nobody can find it for you. Some people will be good in trade using pivot levels, fibonacci levels or in finding divergence in indicators or pattern finding etc. You cant become master in all. But once when you are clear about your strength you can control your fear and greed. It wont happen in a single day. And the whole process takes time depending on your hard work.
PS : I am always fascinated in oberserving human behaviour and mind. And share market reflects human mind set.
Doing paper trade after becoming a trader may be because of not following your trading plan properly. You may think your trading plan is wrong and you want to find some other suitable trading plan. The real thing is your mind dont know how to handle fear or greed. You should feel confident to overcome fear and greed. You have to find you strength and weakness in trading. You are the only one who can find it. Nobody can find it for you. Some people will be good in trade using pivot levels, fibonacci levels or in finding divergence in indicators or pattern finding etc. You cant become master in all. But once when you are clear about your strength you can control your fear and greed. It wont happen in a single day. And the whole process takes time depending on your hard work.
PS : I am always fascinated in oberserving human behaviour and mind. And share market reflects human mind set.
Note
Dear traders, please read my ideas to learn trading. I cant answer for everybody in PM and I dont encourage people who send PM. I publish charts with clear explanation and writing about trading psychology. Read and learn!
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.