Emotion In the Market

 

Unfortunately, Emotion is something na hindi natin pwedeng  mtanggalin sa market. The good news is , we can minimize or reduce it.

 

Marami satin looks at our average price and compare it sa naging galaw ng market price. Ex. DITO bought at 10 pesos then naging 8. So loss na agad ng 20%.. Sell naba eh anlaki na ng binaba nito baka magreversal na.. kaso pano if downtrend eh di magtuloy tuloy ang pagbaba nito? What should i do? Long term investor na ko.. Its a scaammmmmmm!!!!

 

Nag analysis paralysis na..

 

That’s the emotion running your trade..

What if..

You apply logic instead?

 

When you enter a position, immediately set a what if condition.

Same example- DITO bought at 10

If price reaches 12, I’ll sell (20% profit)

If price drops to 9.5, I’ll sell (triggered cut loss at -5%)

Anything in between is hold..

Then move on..

 

Example lang yung percentage ha, up to you kung anong trip mo..

This way, you diverted your emotions into a simple logic formula.. And most important of all, meron ka ng ready action if a certain situation occurs. Hindi ka na magtatanong pa what to do..

No one can remove emotion sa trading. We can manage it though..

 

Share if you agree.