subject: Trend Trading Systems -the #1 Issue That Kills Profitable Traders [print this page] Perhaps the most lucrative yet risky dimension of trading are trend trading systems. Under this system, there are instant winners and even more instant losers. Everything, under this system depends upon the insight, intelligence and prudence of the trader; the more one has the three, better are the chances to foresee the market trends and reap the benefits. Although highly profitable, yet this system is highly uncertain and there are various underlying reasons that make or break trader.
Overconfidence, after a series of Profits in Trend Trading Systems, can really be detrimental for any Enthusiastic Trader
There are times, in any kind of a job, when one encounters with a series of gains within a short period. It is basic human psychology that people tend to get overconfident after such events. In addition, when this overconfidence affects decision making, the trader is expected to falter at some point or the other and loses would be as regular as the gains were before. It must always be kept in the back of the mind that however rosy may be the scenario, audacity is not always a profitable option.
Depression, after a series of Loses in Trend Trading Systems, can really harm a trader as it damages the will to trade and focus on the market scenario
Like always, there is always a flipside to what we have discussed in the last paragraph. When on one hand too much of impudence is not good, loosing the will after a series of losses also do not help. Like winning, loosing is also part and parcel of the trading world. Too much depression after a series of duds, make traders loose their focus on the market and affects their trade acumen largely. The best way to deal with negative situations is to have the right and positive spirit towards the job.
Boredom, because of not getting any new trade in Trend Trading Systems for a long time is another factor that is harmful for traders
One thing should be kept in mind, that trading is not a game where there are just two ways; profits and loses. There are instances, when the markets take a recess and new trades do not come the traders way that regularly. Here, due to boredom, traders make mistakes rushing and either buying non-profitable stocks or selling profitable stocks in the market. Later, when the market catches up, the traders realize their mistakes and repent on the hastily made decisions.
One more factor that has negative effects on traders is unwise etf trend trading. It is hard to guess when a hot stock becomes cold and hence it is prescribed that one must go through a proper etf trend trading course. It not only equips a trader with invaluable knowledge about investments, it also offers them insights about various prospective funds. To conclude, with proper training, knowledge and intelligence, a trader can make profits knocking their doors, more often than not.
