Let Logic Control Your Emotion

In this article we will focus on some of the Dos and Don’ts of the share market. Few points we need to keep in mind for profitable trades. Some emotions that can affect our trades and the right way to control them with logic are also discussed below.

It will not be wrong to say that we women at times let our emotions rule our decisions. That is how we are. There is nothing wrong in that. Considering how much we have to diversify our attention and time, it is only natural. So thumbs up to that! But alas! When it comes to trading we have to knock the logical side of our brain for sure. There is no place for emotional trading in the share market. If we fail to do so, we might end up making losses. So what are the right emotions for share market?

Controlling Fear-

Controlling the fear of market is a must. The volatility must not threaten your decision. Market will be volatile at times. It will play tricks. But there is only so much you will learn from your success. A little failure will teach you a lot more than all your profitable trades put together. This will reveal that profit and loss come hand in hand. It is important to stick to the decision you have made. Fear will only give rise to indecision. Let’s see how indecision can affect our trades.

Indecision can be harmful-

Indecision can be an enemy as you may miss out on the right entry and profit exit. Market will wait for none. In between all the loud sounds of the instruments, you will have to take the right call. Studying the levels is very important. The levels ladder of Dynamic Levels Top 500 Shares can be very useful in this regard. It has 16 years of data collated in a very useful format. Always take buy call at strong Support levels and keep your target somewhere close to a strong resistance level. Why so? These strong support and resistance levels are made by strong market player like FII, DII, Proprietors etc, and are very difficult to break. This could be at least a start for levels study. With time you will start understanding them better.

Patience-

Here comes the most difficult point. Patience is indeed a virtue. You invest your money for it to grow. In the same way you need to invest time for successful trades to happen. When you set a target, you need to give enough time for your stock to reach that level. Your impatience can make you take wrong decision. When you take a buy call and you see the market going up, you will also notice that your stock is getting you profit. So wait unless the target is achieved. One trade that goes as per you plan will get you a whole lot of confidence.

Controlling Greed-

As patience is difficult to achieve, greed is difficult to control. As mentioned earlier how important it is to wait till the target is achieved, it is also important to exit once the target is achieved. If you get greedy, you will miss out on the profit exit. It is advisable not to wait for break outs. Break outs are very risky which might bring huge losses at times.

The most important point is that, you will have to stay updated, follow share market news regularly, read new changes and guidelines of the market. Informed decisions while taking trades are going to be profitable trades in the future.

A writer by day and a passionate reader by night. Writing just doesnot fill my pocket but it also fills my heart. With over 4 years experience in Stock Market, I am a full time content writer with www.dynamiclevels.com