This is How Steve Overcomes The Psychological Obstacle of Trading (2024)

FAQs

What was the hardest obstacle in your trading journey? ›

What was the hardest obstacle on your trading journey? One of the toughest obstacles on my trading journey is dealing with emotions. Emotions like fear, greed, and impatience can greatly influence decision-making and lead to impulsive actions that might result in losses.

Trading psychology is the emotional component of an investor's decision-making process, which may help explain why some decisions appear more rational than others. Trading psychology is characterized primarily by the influence of both greed and fear. Greed drives decisions that might be too risky.

✔️ Uncertainty and impatience. Impatience is not exactly an emotion, but it can cause just as much harm. There are no guarantees in trading and a trader can never know exactly what will happen.

Stop-loss orders

Stock selection, timing the market, and entry are not the hardest aspects of trading. One of the hardest things to do is figure out where to place stop-loss orders.

What are psychological levels? Psychological levels are price points in financial markets that hold significant meaning for traders and investors, mainly due to their simplicity and ease of remembrance. Typically, these levels are round numbers, ending in “00” or halfway points like “50“.

The Psychological Line (PSY) is based on the presumption that people will resist paying more for a share than others, unless of course the share continues to move up. Conversely, people resist selling a share for less than the price others have been getting for it, except if the price continues to decline.

Psychological Resistance: A resistance level represents a price point where sellers are willing to enter the market and sell an asset. Traders see this level as a point of psychological resistance, where they believe the asset is overvalued, and they expect it to face selling pressure.

Why is trading so stressful? ›

Trading can be a highly stressful profession due to the inherent risks, volatility, and uncertainty of the financial markets. It requires concentration, focus, and alertness. But without a sound mind and body, it will be extremely difficult to do any of these things.

The steep learning curve, combined with the need for discipline, consistent strategy, and the ability to handle losses, makes day trading a hard thing to succeed at.

Beginners and novice traders make more than 90% of the trading errors due to these reasons - fear of losing money, fear of missing an opportunity, fear of leaving money on the table which is nothing but holding a trade which is in profits, ego problem to accept your analysis is wrong and to make quick gains in very ...

Fear of losing money, of hitting your equity threshold and trading too large, fear of failure, fear of being wrong, fear of making a mistake, fear of about anything you can imagine, with fear as the common denominator.

Financial management of your start-up

CHALLENGE: Poor financial planning is one of the biggest reasons start-ups fail. If your costs are greater than the revenue opens in new window coming in, your business won't succeed.

Access to Information: Accessing reliable information are the key challenges in stock trading, but sorting through it all can be overwhelming and time consuming. To stay on top of news, trends and research takes a lot of work and dedication. Market Volatility: The stock market is inherently unpredictable and volatile.