| Efficient stock market trading demands that you be | | | | When you invest without doing careful research in |
| able to think about what you are doing. After all, a | | | | the performance of that stock, or in the company, |
| good stock market trader is not supposed to be | | | | you really should not be surprised when the deal |
| playing by hunches, but by careful market | | | | goes sour and money is lost. |
| observation and analysis. Being that no one is totally | | | | Then there are the times when you are making |
| without emotions, most would have to admit that | | | | money on the market, and feel good about a |
| your emotions really could get in the way of trading | | | | particular stock. You believe that it will continue to |
| with best practice principles. Here are some ways | | | | perform well, but suddenly it takes a dive. Instead of |
| your emotions will get in the way if you are not | | | | putting on the brakes as you normally would, your |
| careful. | | | | emotions want to believe that it will come back up - |
| Generally, emotions tend to be strong when the | | | | even though there is no justifiable reason to believe |
| market is not doing what was expected. It is often | | | | that it will. You hold onto it longer than you should |
| at this time that common sense fails and emotions | | | | and a lot of money is lost - only because your |
| just plain take over. You want your stock to perform | | | | emotions got in the way. |
| as expected, you hope that it will, but your eyes and | | | | Emotions remain one of the larger enemies of |
| the charts are saying otherwise. | | | | efficient stock trading. It is not that the trader does |
| This causes you to either hold on to the stock longer | | | | not know better, it is that it is convenient at the |
| than you should, or to sell it and buy another - but | | | | moment to let reason and even planned actions just |
| you do it too quickly. In your haste to make a move, | | | | sit idly by - while emotions run the hour. |
| any semblance of an intellectual pre-planned move is | | | | Getting victory over the emotions may always be a |
| often lost, and generally, when that happens, money | | | | struggle for many, but learning to trust your preset |
| is also lost. | | | | instruments - your own well-thought out plan, could |
| Emotions may also cause you to invest in a stock | | | | guide you through those difficult moments safely if |
| that you just have a hunch about. You have not | | | | you choose to do so. If you have developed your |
| done any real research in the stock, you just saw | | | | plan carefully beforehand, and thought about what |
| something about it that caught your eye. It may | | | | you need to do in such circumstances, and then |
| have been that you had a recommendation from | | | | follow it - it will enable you to keep a lot more |
| someone, or perhaps a friend told you they were | | | | money in the long run. |
| going to invest. As a result, you quickly do likewise. | | | | |