"travel light"....thus goes a maxim
this aptly should be translated as "trade light" in trading!
eg. lets say u short nifty at 8150 and it falls all the way down to 8000! u r sitting on a profit of 150 points. u start fearing the loss of the accumulated profit. so, how does this effect ur trading behavior? u start bearing the burden of this fear, magnified if their is volatility and chicken out of the trade even if u know that there was no need to do that, on the basis of the technical indicators.
had u not been carrying the weight of those 150 points, u would have probably checked and obeyed the technicals without any pre-conception, without any influence, without any stress. u might have taken a fresh short position happily!
the beauty of the situation is that the market doesn't know whether u r carrying a profit or loss and how much! it is you yourself who is conscious of the "profit" you have stolen!!!
drop that burden and trade light!!!
this aptly should be translated as "trade light" in trading!
eg. lets say u short nifty at 8150 and it falls all the way down to 8000! u r sitting on a profit of 150 points. u start fearing the loss of the accumulated profit. so, how does this effect ur trading behavior? u start bearing the burden of this fear, magnified if their is volatility and chicken out of the trade even if u know that there was no need to do that, on the basis of the technical indicators.
had u not been carrying the weight of those 150 points, u would have probably checked and obeyed the technicals without any pre-conception, without any influence, without any stress. u might have taken a fresh short position happily!
the beauty of the situation is that the market doesn't know whether u r carrying a profit or loss and how much! it is you yourself who is conscious of the "profit" you have stolen!!!
drop that burden and trade light!!!
1 comment:
Your articles are always inspiring, Pls keep sharing.
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