Pay Cheque mentality!

Many traders are or have been in jobs in their lives.

They work every month and in the end get their monthly pay.

The monthly packet they get is fixed.

Both in terms of amount as well as the date!

Over the years, this becomes a habit.

And habit gets programmed into mindset.

We develop the habit of expecting regular income at regular intervals.

And then we bring along that habit from the world of job into the world of stock trading.

We want returns from stocks at regular intervals.

We want a fixed return from stocks every month.

We start getting nervous when returns don't come on the "fixed" date!

We start getting anxious when the amount starts to fluctuate!

We start panicking when instead of profits, loss starts!

We are uncomfortable when we have to shell out expenses of trade!

We are uncomfortable when we are asked to wait!

We start getting restless when we are asked not to book profits so early!

We don't expect extraordinary huge returns as we are not used to seeing those big amounts in salaried job!

We rush into unnecessary activity resulting into overtrade just because we are not used to sitting idle in job!

We can't avoid trading in unfavourable conditions because we are in the habit of fearing "no work no pay" rule in job!

We don't hold on to temporary adverse positions just because we believe in ending the day on that day itself!

We force day trading because we want "that" day's "pay"!

All this results into wrong decisions and indecisions!
.....

This paycheck mentality is the one of the main reason of not becoming successful in trading!

What works in Stock Market is the businessman mentality.

Businessmen make money for the entire month or year or life in one or two or some trades.

They acknowledge the expenses.

They are willing to risk, are willing to wait, willing to dream big.....

Beware of the paycheque mentality in Stock Trading!