That “One” Missing Trade…

Psychology plays a very important role in one’s trading pursuit. No one can runaway from those decisions taken based on Greed, anxiety and fear of missing an important chance to make profits. Traders combat a variety of emotions on a daily basis. Most emotions when trading are unavoidable simply due to the fact that we are human! If we fail to deal with these emotions effectively, it can lead to catastrophic results in our trading.  The frustration of a missing trade is worth a discussion.

Every trader, young or old, would ‘ve experienced the frustration of missing that good trade more than once. The reason behind frustration is greed and anticipation about the points that “would ‘ve” been gained in case the trade is taken. That lets us forget the mere fact that we still have our money intact and the market is still available to trade.

Frustration lets you make drastic decisions viz., taking revenge on the market – the main devil that perishes all our money. The fight with the market will more or less lead to disastrous results as the trades taken emotionally are usually bad decisions or made in a hurry without sticking to the trading plan. Once the trade is made without a plan, we are literally stuck in the market as the exit plan is not considered.

This emphasizes the importance of planning before entering any trade. As Joker says in “The Dark Knight”,

“Nobody panics if everything goes according to the plan, Even if the plan is horrifying”

Simple precautions will help you not to miss on the trades you planned to take, for ex.,

- Price Alerts,

- Limit Orders,

- Market Watch criterion.  (will be elaborated later)

A successful trader never misses a planned trade. Even if he does, there is no way that emotions are going to takeover the control of his trading account, ‘coz he knows the fact that market is still available to trade tomorrow. Missing the repercussions of a “Missing Trade” is always healthier for a trader.

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