Managing your account. And yourself.

IMO all depend how you see the "half glass of water" half full or half empty?
if it help the psychology is my top "tool" but that is my opinion and result $$$$

 

Hm? So you should be a positive psychologist, that's it?

 

I didn't say to be a psychologist to trade (they can trade as well) but psychology "tools" (mindset)

 

Why an expensive picture frame? haha PTD had a piece of paper taped to the wall.

 

Understanding psychology and applying it to trading are two different things. There are some popular psychologists that are also decent traders though. Brett Steenbarger being one of them. You can completely understand the psychology of the game while still making poor trading decisions.

 

Like what tools? I mean I'm not too good at psychology so I'm not too familiar with how they work and what they use.

 

Is it due to not being a good analyst or because they're not able to keep up to their knowledge?

 

Hiya Zaysev I wasn't too sure if you were serious or you were playing up - joking plus with my English that I couldn't explain properly I/we cause a bit confusion-misunderstanding....
to be sure that is explained in a better English I got this from Investopedia ;

 

human nature

 

...stick to indexing.

 

an expensive frame reminds me I have to pay for it so I can't smash it if i deviate from the plan.

 

Haha nice. I need something expensive to smash.

 

Use your tablet

 

All investors try to cope with such problems. I've read one good method, maybe it will be good for you too.
The best way to combat emotions while trading is to have your own list of rules. Your rule list isn’t “take deep breaths” and “play soothing music”, no. This list is of rules you have for different situations you come across each working day.

Write down whatever situations that most often make you emotionally driven. I made a list for me personally, titling it “I become emotionally driven…” and writing whatever came to mind,

1. “I become emotionally driven when my stock gaps up or down without me knowing about it.”
2. “I become emotionally driven just before and when my stock reports earnings after hours.”
3. “I become emotionally driven when my stock falls below key support and I don’t know if I should sell or hold”

Your list can go beyond simple situations too, for example I have, “I become emotionally driven when a stock becomes initially oversold intraday according to its Relative Strength Index and I am looking to buy a position.”
Once you have your list down, spend a few minutes and write down a rule for each one that would prevent you from making a possible mistake. The rules can be extremely basic, in fact the simpler the better.

1. If my stock gaps up or down without me knowing, I will immediately sell half my position regardless of direction, perform research, then make an educated decision to re-add or sell the rest of my position later.
2. When my stock reports earnings after hours if it drops more than 3% I will sell immediately using a limit order after hours, and if it remains even or moves up I will hold my full position.
3. I will always place stop orders 5 – 8% below my purchase price, so unless my stop triggers I will hold my position.
   This method is good because you know what you should do in bad situations.