Wrong thinking and trading losses.
1. Refusing to define a loss.
2. Not exiting a losing trade, even after you acknowledge the trade�s potential is greatly diminished.
3. Getting locked into a specific opinion or belief about the market or stock direction.
4. Focusing on price and monetary value of a trade instead of the potential for the market to move based on its behavior and structure.
5. Revenge trading to take back from the market what you have lost.
6. Not reversing your position even when you clearly sense a change in the market direction.
7. Planning for a move or feel one building, but then finding yourself immobilized to execute the trade, thus denying yourself the opportunity to profit.
8. Not acting on your instincts or intuition.
9. Establishing a consistent pattern of trading success over a period of time, and then giving your winnings back to the market in one or two trades and
starting the cycle all over again.
These points are points of INSTINCTIVE trading
http://www.traderji.com/images/smilies/thumbsup.gif it royally helps than all the oscillators, signals and what not
http://www.traderji.com/images/smilies/tongue.gif
Plus I believe all of this is common-sense too
http://www.traderji.com/images/smilies/smile.gifIs there a web tool available to help a trader manage behaviour and trade better?
The markets are dynamic and prices change with every tick. Hence it is important for a trader to have a set of well defined rules for entry and exit and the discipline to execute them.
It becomes easier to enter a trade without fear when the loss is defined at at an acceptable comfort level. Its always advisable to place a stop loss immediately with every long or short trade. If the trade is not going in your direction, take a small loss and exit the trade, else book profits without regret when the target is met. If the confidence in trade still exist, trail stop losses as required. This is ofcourse essence of being disciplined.
A trader needs to analyse his behaviour by taking a review of all trades undertaken by the end of day.
I am not aware of any web tool to manage behavior. Some traders uses systems which give entry and exit levels, which of course is another subject in itself.
Trust this is of help.