When you’re trading, don’t get emotional (no matter how badly your positions are falling apart).That’s not news — people are always saying that you should trade on fear.
But that isn’t the only feeling that screws up your trades, Toni Turner of TrendStar Trading Group told Equities.com. Hoping your position succeeds at all can be your downfall:
“…in trading, hope can lead to both greed and fear. When we stay in a trade too long, hoping it goes higher, that hope can morph into greed, which stops us from taking profits when we should. Hope can also turn into fear when we trade without a plan or without protective stops.”
Not only should you not hope you’re right, but you also shouldn’t need to be right.
“If we feel overly confident, it can go against us because by creating the need to be right. The need to be right is one of the biggest reasons traders lose money.“
So if you’re feeling anything all, positive or negative, stop what you’re doing.