Keeping Emotions in Check While Online Stock Trading

Trading stocks can be an emotional roller coaster, especially for someone who is just starting out. Keeping those emotions in check could be the difference between being successful or not. Emotions can bring on fear and greed which can and probably will ruin a stock trader. It can make you get out of a trade too early, or too late. Cause you do everything except for following your trading method. There are some tips you can learn to help keep your emotions under control.

The first is to have a stock trading system completely written out. This is so you have a game plan you can follow when trading. One of the most important things in this system will be your stock trading strategy. You should write out all the rules within your strategy which may include when to enter, when to exit, and criteria for a set up to trade. By understanding what you are trading you are taking out the guess work and as long as you have back tested your strategy and know that it's profitable, you can trade it exactly the same way every time and be confident that you will make money at the end of the day.

The next step is to practice on a virtual stock trading platform before going with real money. While practicing you want to make it as real as possible. You want to feel the emotions just as if the trading was real. With practice, you will get used to the feeling as well as build confidence in your trading strategy. Practice until you are consistently making money and have a high winning percentage before going live.

When you are trading be sure to follow the rules that your have written down for each type of strategy. You want to be trading your strategy, not trading what "looks good". Being confident in what you trading is important to keeping those emotions in check and as long as you have developed a profitable system, you can be confident that it works a high percentage of the time.

Another step that will help is being prepared when the stock market trading hours begin. This may include nightly scans for potential setups for the next day, and pre market scans for trade ideas. The more prepared you are, the more focused you will be. Being prepared will give you confidence, and cut down on the emotions.

By following these tips you will be able to smooth out the emotional rollercoaster trading stocks takes you on. You will not be able to cut them out completely but that's what you want. You want some of the emotions there. That is why people love to do it. You just want to make sure that you are in control of those emotions. This is the hardest thing for traders to achieve, but with time, once you are able to stay focused and think clearly you will be a much more successful online stock trader.

TradeStocksAmerica Staff

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