The professional traders maintain neat portfolios with winning trades while amateur traders struggle to consistently maintain winning traders. This is simply because professional traders know when to exit or enter a particular stock irrespective of the fact that stock is in winning or losing position. They have the focus on a long term career and do not think about single day profits. They go through a series of losses and profits to average out the profits over a period of time.

One quality that all professionals have in common is that they possess the strength to overcome their emotions while making crucial trading decisions. They take various steps over a time to manage their emotions, risk taking and ability to hold or sell the stock. They do not waste time in unnecessary schemes and plans to make instant money rather they keep focus on making profitable deals which will benefit them in short and long term basis. Sometimes it is inevitable to avoid a loss even for highly skilled traders. In such scenarios the best thing to do is to stop-loss. Many traders look at this option as a decision made only when there is extreme loss but this is not true as the stop-loss feature is a life saver. It helps stop losses over a particular amount and help save capital for future trades. The trader needs to train his/her mind in selling stocks. As traders watch the stocks going down rather than letting them go they are too hesitated and try to hold and wait for the stock to regain its momentum. Also when there is a situation when the stock prices go up rather then selling them for a profit inexperienced traders wait to make larger profits but the sensitive market suddenly drops down and leaves the trader with more smaller profits than before. Hence, the traders need to realize that focus on profit should be their motive but miraculous deals should never be the target. Every trader needs to fight with his/her emotions of holding the stock and selling the stocks at the right time.

Self-Doubt and Uncertainty

Many a times everything goes fine and a trader finds a stock he/she likes but just before pressing the trigger, doubt creeps up and the trader begins to take second guesses. The traders try to research more and more to convince them to buy the particular stock. But mostly they come across things that make them much more hesitant about their idea. Eventually the trader gives up only finding out later that the instincts were absolutely right and the stock went up as expected. The feeling of missing the whole thing makes the trader helpless and even more doubtful about decision making. But many a times after facing such situations the traders takes impulsive decisions and later faces losses in his trades. This all leaves the trader unsure and doubtful about the ability to take correct decisions.

What any trader needs to understand here is that losses and profits are a part of the game. Focusing on both of them is equally important and devoting time to fruitful study is better than wasting time on stressful emotions.

“Carl Jones is an independent trader that loves to write about trading.”