Hesitation is an emotion which overcomes any individual performing a task which he/she is not well experienced with. This feeling goes only with some acquaintance with the work and for some people who fail to gain confidence it continues for long periods. To ignore the fact that psychological barriers drive ones trading abilities, will highly decrease the chances of being a regular profitable trader. Any trader needs to first understand then conquer his hesitation, fear, greed and other anxieties doing rounds in the financial circles.
Many online stock trading websites offer try out options and “paper trade” on the demo accounts so that the new entrants can practice and gain experience in a stimulated environment. This might be helpful in learning the technical skills of trade but it is impossible to create an environment which will provide with psychological experiences as that can only be felt when your own money is at stake. The stock market trading is highly dependant on the fast paced ups and downs of market and hence you cannot take your sweet time to take money decisions. Hence it is indispensable to overcome hesitation as your emotions can take a toll on your decision making power.
An action plan for every situation
The traders need to have an action plan in place for various situations they could face while day to day trading. And the most important thing they should do is stick to their well framed rules and not takes impulsive decisions when the situation actually confronts them. In online trading there is hardly ever any time to make second plans and execute them. Online traders need to overcome the feeling of hesitation before they click on the mouse button.
If one feels that anxiety emotions like fear and anger are taking over it is best to step aside from the dealing platform. The trader needs to clear on his/her risk taking capacity and make risk management plans accordingly. Anticipation can go wrong many a times and losing confidence in self becomes an after effect to this. Hesitant people avoid confronting any situation that makes them uncomfortable. This attitude can never bring out the best in a stock market trader rather it could lead to consequent failures. The best way is to initially watch every move of the market and how experienced traders handle profits and losses on a day to day basis. How traders average out the profits and losses over a month and build their risk taking abilities would also be an interesting learning for many new entrants. Sometimes when the market is dull and traders experience boredom they should use it as a time to research the market sensitivity and not put hands in to unnecessary deals. Evidently there is no fixed rule for trading in the financial markets. Having a well laid trading action plan, which includes correct risk management techniques and can highly improve one’s trading performance, is the only way to make your way through. Discipline is of course the trick of the game.
“Carl Jones is an independent trader that loves to write about trading.”