Well, till now you have heard from many people that if you want to trade then you have to learn and trade but they also take learn and they learn technical analysis and learn to apply indicators and learn to identify the trend and how to see a breakout and when to take entry and exit, they knew everything but even then they are suffering loss, many scholar people around us knew everything but even then they are suffering losses, the reason is their psychology.
If your Psychology is not right then you are going to make a loss, in this article, we will talk about three things, which you will think that happened with us, this happens to us too and if it happens to you then you must have seen that at that time you also have a loss. So I don’t want you to get losses and we want your profit maximization.
If you Trade When You Feel Something, Then the market will Trouble You:
The first thing you have to keep in mind, see here what happens is that people know everything, when they sit down to trade, they can see it all. As I said, what the trend is going on, they can apply the indicators and they can identify breakout and they know entry and exit everything, but even then the bigger trade they take, they take it when they feel it.
Whatever the technical setup may say, today I am feeling i.e. heard something from somewhere. From there the mindset changes, so whatever we hear and our mindset changes, and we start feeling. If we trade after that, then remember that I have to write a line here that if you trade when you feel something, then the market will trouble you. many people have experienced it, you will tell by commenting that today you felt that the market would go up but the market did not go up.
Price goes in reverse and price came down and you thought that the market would go up it can happen in some stocks, and it can happen in bank nifty, in which you trade, maybe it will happen. That what you thought and you felt it would not happen they trade when they feel alright.
We Book Profit but Wait for Loss:
let’s talk about the second point and it is very important it used to happen to me in the beginning and I would like to tell you that it happens to many people even now. We book profit very early, for example, a person is trading with ₹ 100000 and he is trading with 100000 and has made a profit of ₹ 5000 and as he will have a profit of ₹5000, maybe the profit would be ₹25000 or ₹30000, but he will not wait, he will book it immediately and then he will say that profit is profit, either it is 5000, but it is profit, but then he feels that I could earn 25000 or up to 30000, but I have profit and that is good enough.
But when the loss is happening. Then look at what happens, you have invested ₹ 100000 and there is a loss of ₹5000. But he will say that I will not book the loss, I booked profit but I will not book the loss and, let’s wait for the loss that now I have a loss of ₹5000, Never mind, as soon as the price at which I bought, that price comes and today I don’t want profit.
I will sell it and then this loss of 5000 becomes 10000 and then he thinks that no, the price will come, it will bounce back and the market will reverse and what happens after that, right now everything is happening on feeling, you forget everything now, you learned. Now, what happened, you waited again and now there is a loss of ₹ 25000.
Now what the person says, let’s see what will happen today, if profit will happen then it will be big and if not then it would be lost and when you book a big loss then it is said that all this is the operator’s game.
What’s going on, the share market is a gamble and I won’t do anything after today.
Delete this app from which I am trading, and when you start to feel like this, then you should keep one thing in mind.so where is the problem, there is a problem in psychology.
If profit is profit then why Isn’t the loss, when you are keeping one thing in mind and you are working according to the risk-reward ratio and you feel it and you also think it and you did your analysis and after that your analysis is telling you that your risk Reward is 1:3, means if there will be loss then your loss could be of 10% and your profit can be up to 30%, so if there will be profit then it will be three times more and if there is
loss, then you are understanding that loss will be 10% and profit will be 30%, and you are entering the trade and if there is profit then that is very good that you made profit and you beat your target and if you have loss then book the loss, because if you trade for 10 times and you are right 5 times out of it then, you made loss for five times and you did loss according to 10% and you made loss of 50% and If you was wrong for 5 times.
but if you were right for 5 times then you have booked a profit of 150%, so if your trade is going right according to the risk to reward ratio and you are trading according to right accurate psychology then you will make money because it is not possible to make money in all the trades and I have not yet found anyone who has not faced loss everyone suffers loss, but what you learned from your loss and people make money by improving themselves.
Bull Vs Bear Mindset:
Again psychology works and one more point on which you have to pay attention to from today and that is, there are many people whose mindset is already predefined.
Either they have the bull mindset that today the market will go up or if a stock will go up today. Then they see what signals they are getting by which they get to know that stock will go up.
So their focus is to go up many people see why the market can crash today, why this stock can go down, so their Focus is predefined and your Focus should not be like this, If I were asked to you that what is your mindset then you would say like I have the bull mindset or bear mindset but this is wrong and what you have to do, Look, neither you have to keep your mindset bull nor you have to set bear mindset.
You have to be neutral and you have to believe in your knowledge and what you have learned, whatever you have learned in technical analysis, you have to believe in it.
So whatever you have gained from technical analysis you have to apply them, then by staying neutral, when you will trade according to yourself, then you will be able to identify which trend is being formed and even you will identify the pattern on the chart and you will be able to correctly identify the breakouts then the chances of making profit while trading will be increased also your loss will be less.
So when today we are talking about psychology then we discussed three things one is that you don’t have to make your predefined mindset of bull and bear and you have to remain neutral and you have to see that what is chart telling and what is price telling, price is supreme so you trade according to price action and make your psychology positive.