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The psychology of trading Indian Shares
To be
at your best possible performance in the
Indian Stock Market is obviously
essential so don't forget to have both
your body and mind in peak working
order. Larry Swing explores this matter
of healthy mind- healthy body. There is
much research out there which
illustrates how necessary it is to have
this level of order. For the Indian
Stock trader, this is essential
Healthy Body, Healthy Trading Mind
By: Larry Swing
When traders start out, it's completely
overwhelming the amount of things to
learn and suck in. The simple to the
most complex: the computer, the trading
software, the markets, the strategies,
indicators, psychology, capital, time.
On top of that, traders have to deal
with their family and work. Investing is
just not about buy, sell and hold but
the burden and challenge of dealing with
everything and everyone. All this brings
major stress that will affect trading.
Trading is a very stressful work but not
balancing them can be counter
productive. An athlete cannot train
continuously 12 hours a day. He needs
time away from training to concentrate
his mind on other activities in order to
stay relaxed. A new trader is so
obsessed with trading that sometimes he
can go relentlessly day after day with
long hours that eventually he burns
himself and not knowing it.
Due to the fact that trading involves
money, many traders want to make as much
money as much as possible and as quickly
as possible. This may involve spending
as much time as possible to learn and
master the skills. He may spend long
days for months if not years, weekends
included, disregarding family, work, or
social life. This can be hazardous to
one's physical and mental health. When
the other parts of life are left uncared
for, eventually the trader will begin
suffering by making losses. He may not
notice it in the beginning but little by
little, the stress from outside of
trading will start setting in. Before he
knows it, his performance suffers,
productivity and profitability reduces.
Successful trading requires healthy and
balanced mind and body. Has anyone ever
seen a drunken successful gambler in Las
Vegas?
So what how does one gain and manage
healthy mind and body? Many successful
and experienced traders have come to
realize that trading is a marathon and
not a sprint. If it is a sprint, then he
can try to make as much as possible
thinking he'll move on to something
else. Usually this is the option of the
new traders thinking in short term as he
overtrades with high leverage. This is
usually the path to blowing out the
account. But experienced traders want to
stick around to trade until he retires
or until his dying breath. So a marathon
requires conservation of energy by
keeping a steady pace, one step at a
time. Little by little, as he gets more
experience, he can step up the pace when
he gets accustomed to the stress level.
There are many ways to keep balance in
life and trading. Many devote small
hours each day to learning the skills
without intruding into other areas of
life. In addition, he may spend weekends
devoting to it when the week days
impeded him from dedicating time to it.
In day trading, the trader may meditate,
pray, or use other visualization or
relaxation techniques to prepare for the
full day of relentless stress. This is
to erase the mind from other outside
factors, pleasant as well as unpleasant.
As for physical activity, the trader
does exercises such as walking, jogging,
weight-lifting, team or individual
sports to keep the body fit. Not only
will physical exercise maintain healthy
body, the mind tends to relax and
concentrate on things other than
trading. Too much of a good thing can be
bad. Most workaholics end up with some
kind of stress-related syndrome or
illness that leads to early retirement
or heart condition as they get older,
shortening their life span. Those who
pace themselves carry a happier and
healthier and more productive life than
those who don't.
In trading, with money at stake, this is
especially important. Every ounce of
emotional and mental condition must be
preserved and cared for. If not, the
cost can be dear. Larry
Swing is the President of the popular
day and swing trading site
http://www.mrswing.com a place where
you can find free daily articles and
videos covering education, market
analysis and picks from Larry and other
well known traders in the industry.
Article Source:
http://www.ArticleBiz.com
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