Trading Errors and Fears
1st InvesTrade Advanced
Traders’ Conference
Himaanshu Kansal
29-Nov-2014
Contents
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Introduction
Common Errors
Misplaced Beliefs
Dreadful Fears
Trading Niche
Traits of Successful Traders
Introduction
Parallel between game of Cricket and
Trading
Common Errors
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Over-trading
Not taking a loss
Adding to a losing position
Relating next trade with the
previous one
Misplaced Beliefs
 A good day is a winning day
 Working hard means trading more
 Success is making a living from
Trading
 Next trade will be a blockbuster
Dreadful Fears
 Fear of loss
• Keeps one away from taking the next
trade
• Does not let one cut the losses
 Fear of Profits
• Forces one to exit a winning trade too
soon
 Fear of missing out
• Leads to overtrading in terms of:
 Size
 Frequency
Trading Niche
 Components
• Specific Market and / or Asset
classes
• A core strategy
• Time frame
• Decision Making
Traits of Successful Traders
 Mental
• Believe in effort / are courageous
• Discipline
• Ask right questions
• Give appropriate responses
• Think in terms of probabilities
• Able to extract information from
their emotions
• Patience
Traits of Successful Traders
 Others
• Come strategically prepared
 Trading plan
 Entry / Exit Rules
 Money Management / Position Sizing
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Keep excellent record of each trade
 Treat each Trade as feedback
 Write Trading & Psychological Journal
 Emphasize on self-coaching
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Understand personal psychology as well
as market psychology
Value their Capital / Skills / Methods
•
Bibliography
 12 Habitudes of Highly Successful Traders
by Ruth Barrons Roosevelt
 The 28 Essential Lessons That Every Trader
Must Master by Jason Alan Jankovsky
 The Daily Trading Coach by Brett N.
Steenbarger