I'm reading a book titled "Come into my Trading Room" written by Dr. Alexander Elder. He talks about trading and investing psychologies and the critical nature to planning of mind, method and money.
A takeaway for me was the thought of fear and greed and the awareness of these feelings in the market and yourself in your trading. This also coincides with the entry in the markets as entertainment. The excitement of the trade - getting carried away with the potential for gain and disappointment of losses. It is similar to the casino and the racetrack with so many bets to make....
The key to the money aspect is managing your trades to be diversified and not enter all-in or all-out situations. This is difficult unless you really focus on it.
One of the things holding back my trading is following too many stocks and this paralyzes me from making a decision. I want to make the perfect trade and that's because I'm doing an all-in. I can't enter for fear of losing.
In my next post, I'll review the large number of stocks that I follow and narrow them down.
SK
A takeaway for me was the thought of fear and greed and the awareness of these feelings in the market and yourself in your trading. This also coincides with the entry in the markets as entertainment. The excitement of the trade - getting carried away with the potential for gain and disappointment of losses. It is similar to the casino and the racetrack with so many bets to make....
The key to the money aspect is managing your trades to be diversified and not enter all-in or all-out situations. This is difficult unless you really focus on it.
One of the things holding back my trading is following too many stocks and this paralyzes me from making a decision. I want to make the perfect trade and that's because I'm doing an all-in. I can't enter for fear of losing.
In my next post, I'll review the large number of stocks that I follow and narrow them down.
SK
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