Learning sharks-Share Market Institute

 

Rajouri Garden  8595071711 7982037049  Noida 8920210950 , and  Paschim Vihar  7827445731  

Fee revision notice effective 1st April 2025; No change for students enrolled before 15th May 2025

Download “Key features of Budget 2024-2025” here

Share Market Training Classes
Menu

Uncategorized

Drive to Fail

by

Psychology and Risk Management

• What to expect
• Risks
• Position sizing
• illusion of control
• Accepting critisism
• Paralyzed by fear
• Loss is a feedback, not a failure
• The flexible trader
• Focusing on the positive
• Short straddle
• The dynamics of greed
• The herd mentality
• Notes

Drive to Fail

Most traders will respond, “I want to make enormous returns,” Drive to fail in stock market, when asked why they trade. Although the majority of traders enter the industry with the intention of earning a sizable return on their investment, the vast majority blow out their funds. Why do traders lose so much money? The most obvious explanation for many is that they just lack trading knowledge. They don’t implement suitable risk controls. They lack sufficient financial resources. They lack enough training and a reliable trading platform. They lack effective, dependable trading methods. And for many, they lack useful benchmarks and a thorough understanding of how markets operate.

For a beginner trader, any one of these factors—or all of them—could be disastrous. Other reasons for failure can be discovered without having to delve deep inside of one’s mind. Nevertheless, many aspiring traders are curious in the degree to which unconscious processes thwart their trading endeavours. There can be an unconscious reason for self-sabotage. Experienced traders are particularly curious about this subject. Many well-known, extremely successful traders ultimately lose the majority of their cash, and many never return. Some have hypothesised that the cause of such failures is a covert intention to self-sabotage. Depending on your interests and point of view, it’s worth thinking about in some detail, either for pleasure or as a serious path of investigation.

learning sharks stock market institute

In his book “Those Wrecked by Success,” Freud discussed those who Drive to fail in stock market,  after experiencing enormous success. After realising a lifetime dream, some people, according to Freud, experience shame and physical illness. They are uncomfortable with success once they have it, therefore they unconsciously adopt actions to punish themselves.

Contrarily, the majority of study psychologists today disagree that people intentionally or unintentionally seek failure. People Drive to fail in stock market  because they are unable to control challenging circumstances. In other words, traders don’t consistently lose because they have an underlying desire to undermine their efforts; rather, trading is challenging by nature. Because they lack adequate financial resources, sound trading tactics, or the right mindset, traders frequently fail.

However, according to psychoanalyst Roy Shafer, some people subconsciously perceive “success” as a form of failure and, in a perverse sense, actively shun it. For instance, in one case study, a young man avoided achievement out of fear that he would do better than his unsuccessful father. Similar observations have been reported by seasoned traders. Some new traders don’t just trade for financial gain. They have a secret goal in mind. They desire to demonstrate to their friends and family that they are capable of success.

The issue with being in this situation is that, despite one’s best efforts, a strong psychological message that one cannot succeed and is unworthy of accomplishment has been ingrained in one’s mind. Unconsciously, it’s challenging but not impossible to disprove these important partners. What people think of you, whether favourably or unfavourably, matters. Unconsciously, you might not want to want to disprove who they are since they define who you are. However, it’s essential to avoid letting such psychological difficulties affect your trade. Deal only with yourself. You should only trade if you want to, not because you’re trying to impress anyone or yourself.

But for some folks, it’s a problem. It’s a good idea to discuss some of these difficulties with a trading coach or other expert if you suspect that your motivations for trading may be driven by a desire to resolve underlying conflicts from the past. Don’t let irrational motivations rule your actions. Recognize them, navigate them, and trade profitably, easily, and without restriction.

Our location

Regrets

by

Psychology and Risk Management

• What to expect
• Risks
• Position sizing
• illusion of control
• Accepting critisism
• Paralyzed by fear
• Loss is a feedback, not a failure
• The flexible trader
• Focusing on the positive
• Short straddle
• The dynamics of greed
• The herd mentality
• Notes

A Powerful Emotion

When trading the markets, one frequently experiences actual harm: If a trade costs you a lot of money and it fails, you lose everything. Regrets in stock market, The damage is real; the financial loss is terrible. You can frequently regret making the exchange since it stings. The instinct to avoid pain at all costs is one that is very human. Both the actual financial loss and the sheer regret of making a poor trade are unpleasant. Regret may be so agonisingly painful at times that many traders will not even place a trade out of concern for having to deal with the regret of loss in the future.

learning sharks stock market institute

When we discover we’ve made the wrong choice, like placing a losing trade, we feel regret. And the hurt gets worse if we made that decision with a lot riding on it in terms of ego. We’ve risked a lot of self-identity along with our money, for instance, if we conduct an exceptionally thorough analysis and begin to believe that the analysis was so brilliant that it validates our expertise as skilled traders. Whether we realise it or not, we have a tendency to think, “I’ve worked hard on this deal, and I think I’m correct. But if I’m mistaken, it might mean that I’m not as skilled a trader as I formerly believed.

In contrast, if we made a transaction on a whim. Regrets in stock market, we might still feel sorrow over the loss, but it wouldn’t hurt as much. We can simply write off the losing trade psychologically since we didn’t put our egos on the line: “It’s not my fault that I lost money on that trade. I merely struck the deal on a whim. Since regret is difficult, some people will go to considerable lengths to avoid experiencing these unsettling feelings. On the surface, it frequently appears that simply refraining from making judgments is the simplest method to prevent regret.

 

You cannot make a mistake or feel regret if you don’t make a decision.

Although it would seem like a simple way to avoid regret, you might find that avoiding deals (or making impulsive, poorly thought-out trades to boost your ego) prevents you from piling up profits, which is the ultimate purpose of trading. Learning to deal with regret head-on is a more realistic answer.

There are a few easy methods for handling regret. The most crucial step in managing regret is to acknowledge that it is an emotion you will inevitably feel as a trader. You will make lost deals, and if you don’t take the necessary measures, you will later feel sorry for yourself.

learning sharks stock market institute

All people frequently have a tendency to exaggerate the negative consequences of a feared situation. We frequently believe that a bad, terrible, or disastrous exchange would occur. In actuality, if we carefully plan the trade and manage our risk, the danger will be minimal and not at all disastrous. One’s potential demise is considerably inflated in such circumstances. I’m making more of the prospective loss than it deserves; it won’t be as terrible as I’m assuming it will be, you can tell yourself as a helpful thought exercise. Attempting to make the deal impersonal is another technique to reduce, Regrets in stock market.

 

Consider the likelihood that this trade is only one among many others. The result of this one deal is meaningless. All that matters is the larger picture. You can lessen the possible remorse should you lose a trade by reminding yourself of its relative insignificance. Similarly, it’s crucial to keep in mind that a single losing deal (or even a few) does not necessarily indicate that you lack trading competence; it could simply be a run of bad luck. Making a trade’s result emblematic of your trading prowess serves no purpose. Most importantly, never risk your financial security by jeopardising your sense of worth. You are an expert.

Avoid letting the propensity to avoid regret affect your trading choices. Regret may be a strong feeling. Sometimes it can be so excruciatingly unpleasant that one avoids making choices, which can result in making impulsive deals to preserve one’s ego. But you don’t have to let your dread of regret guide you. Remember that even though you might experience a little regret if you make a lost deal, you can handle it. Never attempt to escape regret. Face it directly. More power and freedom will come over you.

 

Our location

It’s Easier to Face Fear than Avoid It

by

Psychology and Risk Management

• What to expect
• Risks
• Position sizing
• illusion of control
• Accepting critisism
• Paralyzed by fear
• Loss is a feedback, not a failure
• The flexible trader
• Focusing on the positive
• Short straddle
• The dynamics of greed
• The herd mentality
• Notes

It’s Easier to Face Fear than Avoid It

 

Rohan imagines himself as a successful trader. He fantasises of winning big and accumulating a tonne of money. He imagines in the back of his mind that if he were wealthy, he could live in luxury and with distinction. Sounds recognisable? Face and fear, Many beginning traders are lured to trading to realise their dreams of financial success. It is normal to want money. Humanity has spent generations chasing success and money. According to common wisdom among seasoned traders, those who are humble and only seek to enjoy trading will ultimately succeed since trading itself delivers intrinsic benefits that are satisfying in and of itself.

Nevertheless, trading can be extremely boring at times. Day after day, month after month, traders must make trade after transaction. When something needs to be done repeatedly, even the most enjoyable activities start to lose some of their charm. In addition, one has to support themselves. You won’t be able to survive if your profits are insufficient to cover your losses. The concern of blowing out or becoming burnt out is a real one that most traders have. It is extremely likely that you will lose your edge and blow out. You won’t be able to trade in the end.

learning sharks stock market institute

The notion that it is simpler to avoid facing the unpleasant than to face it head-on is a prevalent irrational one. However, we experience more anxiety and terror when we foresee an imminent catastrophe than when we courageously and resolutely face an unpleasant reality. Making plans is preferable to waiting for a tragedy to occur. And if you ignore the potential that you could easily burn out or blow out without taking preventative measures, that is exactly what you are doing. In both situations, taking a definite stance on the issue will help you save time and effort.

 

As a new trader, Face and fear likely that you’ll lose your entire account balance unless you establish reliable trading methods and gather enough market experience to know when they’ll work and when they won’t. Making it seem impossible will only make matters worse. It is crucial to follow these two steps: Limit your risk exposure on every one deal, and have a backup plan in place just in case you blow your account. You’ll have a better chance of surviving the learning curve if you limit your risk. A realistic recovery strategy should also be in place in case you are unable to overcome the learning curve.

The key message is that disaster prevention efforts must be proactive rather than waiting for one to happen. For instance, many traders engage in day after day of trading without receiving enough rest and relaxation. Some people think that in order to keep ahead of the competition, it is important to trade every day. The issue is that everyone has a finite amount of energy. It is essential to frequently rest, and if required, to take extended breaks. Burnout cannot be avoided by acting like you are a superhero when you are not. You must take pauses from trading, even if they span months or years, to avoid burning out.

 

It is human nature to want to avoid looking at prospective issues. It’s difficult and frustrating to trade. It’s highly conceivable that if you don’t take precautions, things will get worse. It is preferable to take active, deliberate action than to do nothing and avoid thinking about it. Deal with issues head-on before they overwhelm you. You’ll discover that you trade more profitably over time.

Our location

A Trading Fable

by

Psychology and Risk Management

• What to expect
• Risks
• Position sizing
• illusion of control
• Accepting critisism
• Paralyzed by fear
• Loss is a feedback, not a failure
• The flexible trader
• Focusing on the positive
• Short straddle
• The dynamics of greed
• The herd mentality
• Notes

A Trading Fable

It’s challenging to foresee every potential negative outcome. Even though we would like to, we are unable to foresee or account for every potential problem. When we look back on a deal, what may have seemed like a smart move at the time may turn out to be a mistake.Trading Fable, The prudent trader, however, does not become excessively agitated when this occurs. He or she attempts to exert as much control as possible while simultaneously accepting the things that are beyond his or her control. Second, having scepticism is helpful. Despite how uncommon they may be, you must be prepared for the worst case scenario. You cannot become unduly concerned with every potential negative event.

 

Big setbacks should be mentally anticipated so that you are equipped to handle them when they do.

Disasters certainly occur, but only if you choose to perceive them as such. If you enter trading with the expectation that occasionally awful things will occur, you’ll be able to recover swiftly and be prepared to seize the next market opportunity. Bert has two possibilities. He could either criticise himself for not anticipating every negative development, or he could accept the losing transaction as part of his experience and start planning how to make up the loss right now.

learning sharks stock market institute

Third, he might want to set some goals that are a little more doable. He might have been taking a little bit too much risk for a beginner trader, given the size of his account.

Trading Fable, Trading frequently involves confusion and ambiguity. No matter how much we would like to, we simply cannot take every scenario into account. Trading winners embrace the unexpected and move forward actively and enthusiastically.

 

Our location

A Precursor For Trading

by

Psychology and Risk Management

• What to expect
• Risks
• Position sizing
• illusion of control
• Accepting critisism
• Paralyzed by fear
• Loss is a feedback, not a failure
• The flexible trader
• Focusing on the positive
• Short straddle
• The dynamics of greed
• The herd mentality
• Notes

Detailed Action Plans

 

We are accustomed to acting automatically and impulsively in our daily lives. For instance, when we drive, we instinctively make turns without giving it any conscious thought. Precursor for trading, But things weren’t always like that. When we initially started learning to drive, we carefully considered each step. When participating in sports, it is also valid. At first, each action required intentional, deliberate effort. You eventually developed the skill to carry out each action without much thought as a result of practise. However, beginner traders believe they can deal on the spot despite having acquired a variety of talents over their lives.

 

It might be challenging to trade on the spur of the moment when you first start out in trading. There are too many things to take care of, and without a tonne of experience, mistakes are inevitable. Precursor for trading, Making a particular plan of action when trading offers obvious advantages. Scientific studies demonstrate how action plans assist people in achieving their objectives. Numerous studies by Dr. Peter Gollwitzer, a professor of psychology at New York University, show the advantages of creating detailed plans that specify when, when, and how to carry out an action.

 

It might be challenging to trade on the spur of the moment when you first start out in trading. There are too many things to take care of, and without a tonne of experience, mistakes are inevitable. Making a particular plan of action when trading offers obvious advantages. Scientific studies demonstrate how action plans assist people in achieving their objectives. Numerous studies by Dr. Peter Gollwitzer, a professor of psychology at New York University, show the advantages of creating detailed plans that specify when, when, and how to carry out an action.

learning sharks stock market institute

What does research on planning show? Dr. Gollwitzer makes the case that having plans makes it easier for people to recall what needs to be done explicitly in a review of pertinent studies on creating specific action plans. Instead than wasting time trying to remember what they are going to do, they just do it. They easily carry out their predetermined plans because they have already decided what to do and when. Second, studies have shown that having a strategy in place makes people more responsive.

 

A well-thought-out plan will enable you to react more quickly when favourable market conditions appear. Thirdly, people may more readily ignore interruptions and diversions when they have a strategy. They are better able to maintain self-control and concentrate more readily on the work at hand. Behavior plans are particularly helpful when attempting to react in high-stress circumstances, such as on days when the market action is difficult to predict. It might be stressful to trade the markets on a particularly turbulent day. Several choices must be taken immediately. However, the human mind is limited.

We are only able to focus on a certain quantity of information at once. But we can concentrate our limited psychological energy more effectively with a well-thought-out trading plan. When we have a plan, we can react quickly and with assurance. So, if you want to trade well, create a thorough trading plan and stick to it. Long term, you’ll be happy you did.

 

Our location

Focus on Action, Not Prize

by

Psychology and Risk Management

• What to expect
• Risks
• Position sizing
• illusion of control
• Accepting critisism
• Paralyzed by fear
• Loss is a feedback, not a failure
• The flexible trader
• Focusing on the positive
• Short straddle
• The dynamics of greed
• The herd mentality
• Notes

When trading, mistakes are simple to make. You suddenly become disoriented, anxious, and make a trading mistake. Contrarily, when trading with an ideal attitude, the successful trader is concentrates on his or her present experience, the current market activity. Focus on action not prize. Rather than the reward is the finest rule a trader can adhere to. The satisfying rewards that may be gained from trading are what draw many people to it. Profits can frequently be used to purchase items that make one feel admirable or worthy in the eyes of family and friends. Similar to the lyrics of a well-known country song, one can ask their former detractors, “How do you like me now?” after becoming successful.

 

Many people are drawn to trade because of not Focus on action not prize, the rewards, prestige, and status.

All of these, can serve as powerful motivators, but ironically, if you place too much emphasis on winning, you won’t be able to trade profitably or regularly. Similar to the athlete who is the favourite to win a sport, one typically falters under pressure. High expectations make it difficult to concentrate solely on the tasks at hand. When your hopes are high, you’ve already made up your mind that you deserve the reward, so the mere possibility that you might forfeit it is terrible. It is possible to stop losing.

learning sharks stock market institute

When one works under the notion that winning is the only option, one is typically easily sidetracked to the point of making a variety of blunders that result in losses rather than profits. You must develop the ability to pay complete attention to your current experience rather than the possible rewards.

Fritz Perls, a renowned psychotherapist, famously said that dread and anxiety arise when we dwell on the past and worry about what might occur in the future. We will be able to live in the now and enjoy our current experience if we can keep our attention on the here and now. We lose concentration on what we’re doing the moment we start worrying about what might happen in the future. We become disorganised, and when a deal is at stake, being disorganised can be disastrous.

 

Firstly, We will discuss Thinking about the large reward at the end, is the most frequent cause of concentration problems. You’ll lose focus if you start to think, “I can’t wait to make a profit and bask in the glory of success.”

You might even begin to believe that you must succeed in this trade. In the end, that kind of thinking is useless. It’s highly likely that you’ll begin to stress and make a trading mistake. Focus on action not prize, Such as, The more you can concentrate on the mental difficulty of trading as you place a transaction. The more probable it is that you will carry out your trading strategy with ease and trade regularly and profitably.

Nevertheless, it might be entertaining to occasionally consider winning the big prize, just not too frequently or during trading hours. Thinking on the possible long-term gains trading may offer, the big picture, may be stimulating during off-hours.

 

However, there is a distinction to be make between thinking that you “would like” to win the prize and feeling that you “must” get it. Even if the concept could come to mind when trading. It’s important not to let it consume you. It’s critical to recognise that, if prospective rewards are your major driving force, winning potential rewards may be your main driving force behind trading.

If you genuinely believe this and make an effort to suppress it, it will eventually seep through and have an impact on you—typically negatively. However, if you carefully consider this presumption and firmly persuade yourself that it isn’t a solid cause to pursue trading, you’ll neutralise the assumption.

Prize-driven traders typically don’t stay in the market for very long. The passion of the enterprise must ultimately come before trading. No matter if you win or lose, trading has its own rewards. In the end, If you can keep your attention on the actual trading process, you will feel more satisfied as a trader, trade more naturally, and trade more profitably.

Our location

The Herd Mentality

by

Psychology and Risk Management

• What to expect
• Risks
• Position sizing
• illusion of control
• Accepting critisism
• Paralyzed by fear
• Loss is a feedback, not a failure
• The flexible trader
• Focusing on the positive
• Short straddle
• The dynamics of greed
• The herd mentality
• Notes

The Herd Mentality

Have you ever enjoyed watching a herd of cattle graze in a wide open field? It’s very amazing. As they graze and stand in a dispersed pattern, the cows appear content. One cow suddenly decides it has had enough food and begins to move toward the barn without giving any obvious explanation. The remaining cows all appear to follow, one by one, until the entire herd is moving directly toward the barn. Where is that man going, the cows seem to be wondering. What is he aiming for? I’d like to participate in this. I’m going to go after him. Despite the fact that the leader does not appear to know what it is doing, they nevertheless follow it.

 

That is a stark illustration of the herd mentality, which some market experts believe to be similar to the markets. One trader begins to buy, followed by another, and so on until a number of traders are all making purchases for no apparent reason. Despite having a higher level of intelligence than cattle, people have a natural tendency to follow the herd. Everyone seems to be thinking, “These people can’t all be incorrect,”

learning sharks stock market institute

Going with the flow makes sense in some situations. In a bull market, buying and holding makes logical because rising prices are anticipated. However, if market circumstances change, you must be cautious to avoid getting crushed by the merchants at the back of the herd as you try to stop to avoid running into a brick wall. The mob is usually right up until a turning point occurs. Why? Once practically everyone has determined the market is headed in one direction, there aren’t many traders left to sustain the trend.

 

At that point, a countertrend starts and the market starts moving the other way. The trick is anticipating that turning point, knowing when it will happen, and creating a trading strategy to profit from it. Humphrey Neill describes how to adopt a contrary viewpoint in his book, The Art of Contrary Thinking. Having a different viewpoint from everyone else entails more than just going against the grain. A true contrarian uses creative market analysis to try to come up with a novel trading strategy. It necessitates extensive knowledge and consideration. One must develop the ability to think counterintuitively to the dominant wisdom. It resembles thinking backwards in several ways. Consider the probabilities that the audience is mistaken.

 

Look for indicators that could signal a change in the market’s dynamics or uncover new industries that might profit from the change.

For instance, during the Great Depression, many favoured staying in and listening to the radio to going out to watch movies or live performances. As a result, radio stations turned a profit during a difficult economic period. Such chances are discovered by a contrarian, who then seizes them.

Although taking a contrarian stance might be helpful, it can be challenging to overcome the herd instinct. People naturally have a tendency to watch what others are doing and follow suit while investing. It seems secure and cosy. However, if one is not careful, going with the flow might be disastrous. The majority may not be right. Therefore, constantly consider the alternative. Analyze the markets thoroughly. Think about the reasons the majority might be incorrect. Look for evidence to bolster the opposing argument. If you are correct, you can profit from it and achieve a significant victory.

 

Our location

The Dynamics of Greed

by

Psychology and Risk Management

• What to expect
• Risks
• Position sizing
• illusion of control
• Accepting critisism
• Paralyzed by fear
• Loss is a feedback, not a failure
• The flexible trader
• Focusing on the positive
• Short straddle
• The dynamics of greed
• The herd mentality
• Notes

The Dynamics of Greed

Gordon Gecko states that “Greed is Good” in the feature film “Wall Street.” Although it might spur you on to pursue perfection and keep you going when things get tough, greed has drawbacks. It is frequently asserted that fear and greed are what drive the markets. The general populace naturally yearns for riches and all the benefits that money may offer. The general public invests in stocks because they are zealous and think that doing so will help them reach their financial objectives. However, when the price starts to fall, they become concerned about losing their investment and sell, frequently too soon and at a loss.Market dynamics are driven by the dynamics of greed.

 

You can become a trader driven by greed. A difficult career is trading. Not everyone succeeds. You must research the markets and discover how to profit from their movement. This is not straightforward to do. The search for profitable trading methods never ends. You could discover a tactic that performs well initially, but as market conditions shift, the tactic loses its effectiveness. Making money in the aftermarket market is the challenge. Why even try? You won’t succeed if you aren’t motivated to succeed. You won’t keep trying. You won’t attempt to overcome one setback after another. Greed has a strong motivating effect.

If you’re like most people, your dream is to live forever in happiness.

People have long believed that they could solve all of their issues if they had unlimited wealth, but this belief is frequently untrue. Human minds have the capacity to deceive themselves into thinking that outlandish desires can come true. Money cannot purchase happiness, yet it may be wonderful to have enough riches to make your life more comfortable. However, the desire for wealth and the knowledge of how to acquire significant fortune through trading serves as a tremendous incentive. It can be beneficial at times to indulge in imagination and take pleasure in the drive for success. In times of adversity, it keeps us going. It provides us a goal to work for.

learning sharks stock market institute

Monster: greed

However, there are drawbacks to greed. Although money can be a strong incentive, many individuals are aware that it cannot fix all of our issues. Furthermore, our subconscious ideas and emotions frequently have the power to influence us against our will. When everything seems to be working against us, we can lose hope since we know that money won’t fix our problems. We must recognise how greed can be both a motivation and a hindrance. It may cause us to lose concentration on our trading strategy.

 

We could become so preoccupied with making money that we lose sight of the benefits of trading. Trading presents a mental difficulty. Through practise and experience, you can improve your trading abilities and take pride in the fact that you have mastered a skill that few people have attained. Don’t devote all of your attention to making more money. Instead, concentrate on honing your talents and relishing the trading experience. In the long run, you’ll discover that you’ll like the game, and oddly, you’ll trade more profitably when you don’t worry about the short-term results.

Our location

Focusing on the Positive

by

Psychology and Risk Management

• What to expect
• Risks
• Position sizing
• illusion of control
• Accepting critisism
• Paralyzed by fear
• Loss is a feedback, not a failure
• The flexible trader
• Focusing on the positive
• Short straddle
• The dynamics of greed
• The herd mentality
• Notes

Focusing on the Positive

Focusing on the positive, is the common for traders to become fixated on their mistakes when attempting to face the demands of trading, to the point where they begin to believe they will never be able to master the markets. However, it’s frequently lot more fruitful to highlight what you are doing well rather than what you are doing incorrectly. Only after you’ve recognised your strengths should you focus on pinpointing your weaknesses and making a few tiny improvements. You will undoubtedly experience some frustration and possibly disappointment if you first concentrate on what you’re doing incorrectly. However, initially concentrating on what you are doing well will make you feel upbeat.
 

We are frequently encouraged as kids to become self-conscious of our limitations. We learn to anticipate suffering the consequences of our errors. Soon we begin to ignore our limitations in order to avoid punishment. Furthermore, when restrictions are concealed, no action is made to address the issue until a catastrophe occurs. To embrace failure, though, is a different strategy. Like expressing, “I have faith in my overall abilities. In order to trade even better, I’m going to attempt to see what could go wrong. Instead of viewing a failure as a terrifying occurrence, adopt a more proactive, problem-solving mindset. Failure can be viewed as a chance for improvement and advancement.

learning sharks stock market institute

Consider a diligent trader who is unsuccessful due to the employment of faulty, unreliable trading tactics. A trader has a lot of things going for him or her if they have enough trading capital, understand how to map out every component of a trading plan (such as entry, exit, and risk control tactics), and can follow the plan. It’s critical to identify these assets right away. You become upbeat and prepared to pay close attention to the few things that are going wrong as a result.

 

You can more readily develop the abilities necessary to engage in profitable trading if you have this vigour and excitement (In this particular case, you can focus on learning and executing winning trading strategies, while feeling assured that other sub-skills have been mastered).

Different traders have various resources and restrictions. Some traders may employ sound trading techniques, but they lack the discipline to stick to their trading plan. Many people may be able to identify some of their trading plan (like risk management), but they might not be able to specify all of it (such as entry and exit strategies). Whatever it is you’re “wrongly” doing, it’s critical to recognise these problems and resolve them. However, if you dwell on the bad too much, you’ll end up feeling let down. Prioritize the good first.

 

Our location

The Flexible Trader

by

Psychology and Risk Management

• What to expect
• Risks
• Position sizing
• illusion of control
• Accepting criticism
• Paralyzed by fear
• Loss is a feedback, not a failure
• The flexible traders
• Focusing on the positive
• Short straddle
• The dynamics of greed
• The herd mentality
• Notes

The Flexible Traders

The successful trader is adaptable. When it comes to carrying out a trade, flexible traders are unconcerned. They don’t second-guess their plan of action. They conduct their research, create a sound trading strategy, and when the right opportunity arises, they act without restraint. They do not challenge it. They don’t experience any self-criticism. Just like they do. They grab their winnings and go if the trade is profitable. In fact, even when they lose, they continue to trade.

 

They are aware that the ability to execute trade after trade with assurance and adaptability is essential for successful trading. The greater your degree of adaptability, the higher your chances of achieving and sustaining profitability.

A trader’s flexibility is influenced by both situational and personality factors. Although it can be challenging in some situations, cultivating an attitude of carelessness is important. For instance, you will never feel at rest if you are undercapitalized and have good reasons to worry losing the money you are trading. You’ll instinctively understand that you can’t afford to lose. You must trade with funds you can afford to lose and practise sound risk management. You may feel comfortable that everything will be okay in the long run if you know that you have very little to lose on any given deal and that, in the worst-case situation, you can still make a profit.

learning sharks stock market institute

Then, you can develop the carefree outlook that serves as the cornerstone of a flexible trading strategy.

Nevertheless, some people have personalities that are rigid and unbending. It has many roots in experiences from early in life. Parents may have been harsh critics who instilled in their children the idea that making a mistake would have catastrophic consequences. Even as adults, some people second-guess every choice in order to avoid the terrifying consequences of making the wrong choice. When it comes to trading, there isn’t much you can do most of the time; sure, it’s important to take measures in life, like making sure you keep an eye on your speed when driving to avoid receiving a ticket or getting into an accident.

Unfavorable events like earnings reports, interest rate increases, or significant national events are certainly something you should prepare for, but most of the time, the markets are unexpected. You must accept the offers made by the marketplace. You are unable to control the marketplace. You need to be more carefree in your attitude. It is hard to take into account every element that could work against a deal. It’s essential to merely do your best effort, engage in the trade, and see the results. The rigid trader, however, finds it difficult to accomplish that. Unyielding traders believe they have total control over their future.

 

Our location