Emotional vs Strategic Trading for newer traders.

  Ever catch yourself making pointless trades? Only to find out your paying to build someone else's account and/or your brokers bills? Emotional trading is usually the result of boredom, heavy losses on the day, bad swing trades, previous days losses, family issues, trying to hit a quota, bad days, worrying about something, and anything that throws you off mentally. As traders we put ourselves through some serious stress more so the newer traders.

  Good vs the bad trading. If you think your trading emotionally your most likely correct. Ask yourself what your odds are of this trade working out. Is it worth the risk? Is it worth my time and effort if the answer is no and your trading the ticker anyways, you need a break and a reality check. Emotional trading works every once in a blue moon, but if you wanna make it in this career you need to cut that out completely. If you find yourself clicking buttons left and right, take a break. When I say take a break I mean take a few days off. You'd be surprised how much this works. The most succesful traders out there trade less and wait for opps. You should do the same. Don't simply force because your down or want to make money today. It won't end well from experience. If your caught with your pants down admit defeat on the  day. Yes a lot of people comeback from heavy losses on the day, but ask yourself if that's a healty way of life and ask yourself what if I dig yet a bigger hole? If your the type of trader that has to make your money back on the stock you lost it on, good luck because revenge trading hardly works out. Consistency is key.

  Stratigic trading. In the previous paragraph I talked about how you should admit defeat on the day if your down. Now if your a more advance trader, but took losses in a previous trade and it was big, but you know for a fact your risk is good then go for it. Say you risk $100 to make $200. That's good odds, but if your trading like crap on a certain day, just cut the day the markets will be here tmr and the next day.

  Let's put this more in perspective. Say you make 20 trades a month. 5 trades a week. Say you win 75% of the time your winning on 15 trades. Yet your down 5 days in a month. Let's say you push those days your down, yet it gets worse now you just killed the possible green days you had or coulda had. If you admit defeat on those 5 days, you still had 15 days green. You see what I'm saying? That's simple math. Yes I know you may make 100$ on one trade or $400 on the next and it may not matter green vs red days, but what I'm trying to do is help you put this into perspective. Your working with better odds here then in the casino. Use that to your advantage not disadvantage.

   Adding to winners not losers. Ever heard of scared money make no money? Why is it so hard to add to losers but not add to winners? Ever ask yourself that? We are so eager to take profits yet let losses slide more then they should. If the trend is in your favor and your up on the position don't be scared to add if and when the trend is still in your favor. I've found myself adding to winners more often now and cutting starter losses quick. It works. Let me tell you it's easier. Yes some may comeback and you may break even, but it works more often then you think.

  Lastly I wanna talk about shoulda woulda coulda mentality. IT DIDN'T HAPPEN MOVE ON!!!!!!!!!

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