one day we are faced with a choice of investments, where we know it,
that the emotional state we are not good as we expected. Perhaps
this is a frequent cause of why we are always doing strange habits and
sometimes make us to take something that is not rational.
Actually, if you include people from the rational part? may be of a question, our own sometimes less understand it, then to be able menjawabannya you can find on the description below.
-OO0-Fear of Regret-0O0-
of fear of a regret is a condition in which a trader's emotional side
of being affected, a trader will realize when he had made a mistake.
Example: A trader has to open a Buy position, and fixated on the price at which he did buy. When prices move far down, he unconsciously emotionally involved with the price at the time he did open a Buy position.
So, he tries not to cover the trading position. Due to avoid regret trading has made a wrong decision. He was also embarrassed when a loss position known to other people.
With such circumstances, actually what we should do ...?
You can illustrate these conditions by asking yourself, "Am I going back to buy again in a position of this loss is my cap?"
If the answer is no, then it is time to close your position.
Fear of feeling sorry and ashamed to admit a mistake sometimes even leads us to have more severe remorse.
An ensnared by emotional
we sometimes tend to be affected emotionally to market conditions are good or bad. Differences market situations such as these often have much impact on the emotional side of a trader. While investors tend to be optimistic when the market is booming. The result, they become more patient to wait until you get a bigger profit. But
when faced with recession-hit market conditions, without hesitation
they quickly sell his position in order to obtain a small profit.
We sometimes see ourselves is often too high. When we had made several successful trades in a row - also, we feel that we can beat the market. Emotional condition as this will usually lead to excessive trading positions, the cost of a large trading commissions, as well as the possibility of loss is greater as well.
Behavior - behavior of market participants is usually called behavioral economic. Many studies conducted to observe events like this. And the result, behavioral economic as often in conflict with academic economic theory.
From the description above, it can be said that our great enemy is ourselves. Know what kind of condition that makes us lose control over ourselves. By understanding what happens to our emotional side when trading, hopefully we can avoid mistakes - trading mistakes like this over and over - again.