Stock market - the Mind Game

The stock market is the game of the mind. You have to be mentally very strong and alert. You have to be consistent in your investment; you should not change your mind after placing the stop loss order. You have to put a stop loss order or cancel the same if you see that the market is going against you. Many people try to stop loss level to try and give time for market to move in the desired direction. However, you have to maintain the original stop loss level and try not to cancel it. If you cancel a stop loss order you are trying to hope that market will reverse its direction and move in the direction of your trade. It is not a wise move

You have to be sure in your mind when you are trading. You have to think properly if you want to trade; unless you are fully satisfied you should not make any investment. Try to do popper research and consultation before investing in any stock. Whatever you buy, you buy don’t thinking or giving it proper consideration. If you reach a decision, then you have to abide by that decision. You should be firm in your thinking and do not change your mind or cancel the trade without adequate reasons.

Even when a market reverses direction never let a profit run into a loss of capital, you ca do it by raising the stop loss level gradually. This system of gradually increasing the stop loss level will ensure that you roll your profits and cut losses. You should not make basic mistake of cutting the profits short out of fear, and roll the losses on the hope that the market will move in the desired direction. It is a mistake that has to be avoided at all levels. Be firm in your mind and use your stop loss orders effectively and gradually increase them to stay with the trend, until the stop loss order is triggered.