Trading Errors and Fears 1 st InvesTrade Advanced Traders’ Conference Himaanshu Kansal 29-Nov-2014

Contents Introduction Common Errors Misplaced Beliefs Dreadful Fears Trading Niche Traits of Successful Traders

Introduction Parallel between game of Cricket and Trading

Common Errors 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 Keep excellent record of each trade  Treat each Trade as feedback  Write Trading & Psychological Journal  Emphasize on self-coaching 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