Fear

Fear in stock and option trading will often cause a trader to turn risk averse, making them hesitate with every trading decision they make. One of the many trading mistakes fear causes is a quick profit-taking out of fear that the stock market gain will vanish. There can be irrational fears such as the stock market ready to crash at any moment, leading a stock and option trader to become a perma-bear. Most often, we are worried about the last crisis happening all over again. In this session, we discuss dealing with fear as a stock and option trader and what you can do to stop the fear and become confident in your stock and option trades

Greed

Greed is more generally the fear of missing out. It can create this feeling that you never own enough bullish positions when markets rally or bearish positions when markets sell-off. It can also help you to trade with and stick with the trends. “Greed for lack of a better word, is good” Gordon Gekko.

We all know the saying…”Pigs get fat and hogs get slaughtered”. There is a point in every stock and option trade where a trader needs to exit based on the charts. Greed in stock and option trading will often cause a trader to take more risk when they should be holding back, making them take larger losses with every trading decision they make. One of the many trading mistakes greed causes is a staying in a stock or option trade too long, hoping for even bigger gains. Market tops and bottoms are the most risky, leading a stock and option trader to overstay trades in the end of trends. In this session, we discuss dealing with greed as a stock and option trader and what you can do to stop the greed and become consistent in your stock and option trades

Emotional Mistakes and Misuse of Stops

During a trade, a trader can become their worst enemy due to the emotional investment they have in the position. This can lead to many forms of mismanagement and rule breaking, as the trader try’s to justify their actions. The below video touches on a few key points to be aware of if you find yourself in these situations, along with common misuses of the stop loss order.

Cutting Winners

Exiting positions before they reach their full potential, or before the allotted amount of time, could be the sign of something much more destructive over the long term. This video touches on key points and pitfalls of exiting a winning position early, along with how to identify the difference between planned exit vs an emotional exit.

Screen Watching

Our Trading Psychology series details that our brain chemistry controls most of what we feel which leads to our actions when trading stock and options. Because most of what we feel is from hormones, screen watching will only amplify the release of hormones which are the precursor to our actions. Hormones like Adrenaline are released into the body and brain to help us in times of “fight or flight” when trading stock and options. Feeling this adrenaline in stock and option trading will often cause a trader to take more risk when they should be holding back, causing them to act without thinking. One of the many trading mistakes screen watching causes is cutting losers as the fight response is activated from the release of Adrenaline. In this Trading Psychology session, we discuss screen watching as a stock and option trader and what you can do to stop watching the screen and become consistent in your stock and option trades

Adrenaline

Our Trading Psychology series details that our brain chemistry controls most of what we feel which leads to our actions when trading stock and options. Adrenaline is a fantastic hormone, released into the body and brain to help us in times of “fight or flight” when trading stock and options. Adrenaline in stock and option trading will often cause a trader to take more risk when they should be holding back, causing them to act without thinking. One of the many trading mistakes adrenaline causes is cutting losers as the fight response is activated from the release of Adrenaline. In this Trading Psychology session, we discuss dealing with greed as a stock and option trader and what you can do to stop the greed and become consistent in your stock and option trades