Profitable Stock Trading: Avoiding The Emotional Mistake

No matter how mechanical traders want to be, there is always an element of psychology and human emotion.  The best traders can minimize this on a regular basis and on days when they cannot minimize at least limit the damage that they could do to their trading.

Today was just such a day for me, a day of joy, anger, confusion, frustration and relief.  Today started out well enough being up a little more than $5,000 by 11 am and flattened out my book mostly being long stocks with a short in AKS offsetting my longs.  The markets started to pull in and picked up some steam to the downside.

On this selloff many stocks came into levels that I believe are great spots to the long side, FDX, CTXS, F and NVDA all hit long term buy targets, so I had my bids hit.  The markets continued to selloff and my profits slid quickly to only up $1,500 and this is when the emotion started to kick in.

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