Zebu blog

Tag: trading psychology

  • Why Selling Too Soon Might Be More Dangerous Than Holding Too Long

    Why Selling Too Soon Might Be More Dangerous Than Holding Too Long

    Every investor remembers a trade they regret.
    For some, it was a sharp fall they held too long.
    For many more, it was a quiet winner… sold just before it started to move.

    In trading rooms and group chats, you’ll hear it often:
    “I sold it at ₹320. Now it’s at ₹470.”
    “I thought 12% was enough.”
    “I booked gains to be safe… but now I feel like I exited too early.”

    This isn’t rare. In fact, it’s remarkably common.

    And in long-term investing—especially in India’s broad equity market—selling too soon often turns out to be more limiting than holding too long.

    At Zebu, we’ve seen this pattern unfold not as a tactical mistake, but as a psychological one. It’s not a lack of discipline. It’s discomfort with holding success.

    Let’s explore why early exits happen so often, why they might be more costly than we admit, and what quiet awareness might do to help.

    The Impulse to Exit Early: Where It Comes From

    It’s easy to assume people sell too early because they lack conviction. But the drivers are usually more nuanced.

    1. Fear of Losing What’s Been Gained

    The moment a trade turns green, it brings relief. That relief quickly turns into anxiety. “What if I lose this profit?” That fear often overrides logic.

    1. Discomfort With Floating Gains

    Some investors feel safer when the gain is booked. Until it’s realized, it doesn’t feel real. And if it drops again? The regret feels heavier than the gain.

    1. Targets That Are Arbitrary

    “I wanted 10%. I got 10%. I’m out.”
    Often, these targets aren’t linked to valuation or broader trends. They’re numbers pulled from habit or hearsay.

    1. Social Influence

    Seeing others book profits creates pressure. In group forums, the one who exits at 8% feels “wiser” than the one who stayed. Even if the stock goes up 40% later.

    None of these reasons are invalid. But over time, if they repeat, they start to form a pattern that caps potential—not out of poor analysis, but because of internal hesitation.

    The Hidden Cost of Selling Too Early

    While losses feel painful, missed gains carry their own quiet weight—especially when they happen repeatedly.

    What makes this more damaging is:

    • Winners are hard to find. Not every stock performs. So when one begins to, letting it run is often where the real compounding lies.
    • Taxes and transaction costs add up. Frequent exits mean more STCG (short-term capital gains) and brokerage outflow
    • Mental residue builds. Investors who sell too early often hesitate to re-enter. The fear of “buying it back higher” creates paralysis.
    • It interrupts long-term positioning. SIPs and delivery-based strategies thrive on time. Early exits break the rhythm.

    More importantly, selling too early often comes from an emotional trigger, while staying too long can be reviewed with structure—stop-loss, re-evaluation, portfolio context.

    That’s why the former is often more dangerous. It feels safer. But it erodes quietly.

    A Real-World Pattern From Zebu’s Community

    Among Zebu’s delivery-based investors, we’ve seen that those who follow price rather than reason tend to exit positions early.

    For example:

    • A quality stock moves 18% over three weeks. Many exit at 6–7%, fearing reversal.
    • After a solid quarterly result, investors lock gains before earnings momentum is priced in.
    • A midcap stock corrects 2% after rising 15%. That small drop triggers panic exits—even when volumes suggest accumulation.

    These patterns aren’t rare. And they’re not driven by poor research. They stem from mental noise, not market noise.

    But the investors who track their own behavior—as much as they track the stocks—tend to notice this loop sooner. And they begin to build pause into their exits.

    The Cultural Layer in Indian Investing

    In India, booking profits is often celebrated more than holding conviction. Many investors come from conservative savings backgrounds. For them, a 12% return feels significant, even if the company has room to grow.

    There’s also deep familiarity with volatility. The instinct is to “take what you can,” especially if the stock has already moved. It’s understandable. But markets don’t reward speed alone. They reward structure. And sometimes, stillness.

    When selling becomes a reflex, it may not be a strategy—it might be self-preservation in disguise.

    Reframing the Idea of “Holding Too Long”

    Now let’s talk about the other side. Holding too long gets a lot of criticism. But context matters.

    If you’re holding a poor performer out of denial, that’s not discipline—it’s avoidance. But if you’re holding a performer and letting it ride—with periodic check-ins and clarity—it’s not a flaw. It’s how portfolios grow. The best performers in most portfolios don’t double in two weeks. They move slowly, pause, consolidate, and then move again.

    Exiting at the first sign of gain might prevent drawdowns—but it also limits upside. Especially in compounding themes like infrastructure, banking, or long-cycle reforms.

    How Long-Term Investors Can Build More Comfort With Staying In

    There’s no formula. But here are some practices that help investors at Zebu find steadiness during uncertainty—not through blind optimism, but by reworking their response to gains:

    • Review, Don’t React: When a stock moves quickly, ask why. Is the trigger still valid? Has valuation caught up? If not, hold with intent.
    • Scale Out, Not Exit Entirely: Instead of exiting fully at 10%, trim a portion and stay with the rest. It balances reward and participation.
    • Use Alerts, Not Emotion: Let platforms like Zebu notify you when a level is crossed—don’t stalk the chart hourly.
    • Track Your Exit History: Look back at five of your early exits. Would staying longer (with structure) have worked? This self-audit often creates new awareness.
    • Avoid Anchoring to Purchase Price: Instead of fixating on entry levels, think in terms of momentum, narrative, or delivery participation.

    These habits don’t remove uncertainty. But they reduce impulsiveness. And over time, they help shift the mindset from reacting to staying present.

    What This Looks Like in Practice

    Let’s take a simple case.

    An investor buys a stock at ₹280. It moves to ₹305 in two weeks. They plan to sell at ₹310. But at ₹305, a new budget announcement favors the sector. Volumes rise. Delivery participation increases.

    Selling at ₹310 now becomes mechanical. But holding—with awareness—might allow the investor to ride it to ₹340, maybe more. This isn’t hindsight. It’s presence. Being aware of why the stock is moving, how others are behaving around it, and what your initial reason was for entering it.

    Often, that pause is all it takes to avoid the early exit trap.

    Final Word

    Selling too soon rarely feels like a mistake at the time.
    It feels safe. Reasonable. Even disciplined.
    But in hindsight, it often reveals something else: an urge to escape uncertainty.

    The market doesn’t punish safety. But it does reward patience—with volatility along the way.

    At Zebu, we believe exits should be as thoughtful as entries. Not reactive. Not ritualistic. Just clear. Because over time, it’s not the trades you avoided or the losses you absorbed that define your portfolio. It’s the winners you let breathe—long enough to work.

    Disclaimer

    This article is meant for educational purposes only. It does not constitute investment advice or recommendations. Investing involves risk, and decisions should be made based on personal financial goals, research, and in consultation with a certified advisor. Zebu provides information tools and insights for awareness—not directional guidance.

    FAQs

    1. How long should you hold onto a stock before selling it?

      There’s no fixed timeline. Hold until your investment thesis plays out, the company fundamentals weaken, or your target price is reached.

    2. Is it better to hold stocks for a long time?

      Long-term holding can be beneficial if the company is growing steadily, but you should stay alert to market changes and business performance.

    3. What should I know before selling stocks?

      Check the company’s fundamentals, market conditions, and whether your reasons for buying still hold true before selling.

    4. Why is selling a stock too early risky?

      Selling too soon can mean missing out on major gains, especially if the stock still has growth potential.

    5. How can I decide the right time to sell a stock?

      Look at your financial goals, target price, and company performance. A mix of research, strategy, and patience usually works best.

  • The Psychology of Trading: How Emotion and Bias Influence Investment Decisions in India

    Markets move, but so do minds.

    Anyone who’s spent time trading or investing—whether casually or with intent—knows that decisions aren’t always driven by data alone. They’re shaped by something less visible, more personal, and often harder to control: psychology.

    This isn’t about being emotional. It’s about being human.

    In India’s evolving equity landscape, where participation has widened and mobile apps have made markets more accessible than ever, understanding the psychology behind decision-making is no longer optional. It’s part of the discipline.

    At Zebu, we’ve observed a growing interest among investors to not only improve their entries and exits, but to reflect more deeply on how they make those decisions—and what might be influencing them in ways they didn’t notice.

    This blog looks at the mental and emotional forces at play when we interact with the markets, especially in the Indian context. Not to offer hacks, but to create clarity.

    Emotion Isn’t the Enemy. It’s the Default.

    Every trade or investment comes with a quiet internal reaction. A gut feel. An instinct. A flicker of doubt or excitement.

    And that’s normal. No one enters a position completely neutral. We’re wired to respond to gain and loss—viscerally.

    But emotion becomes a problem when it’s unconscious. When it acts as a driver rather than a passenger.

    In Indian markets, we’ve seen this play out repeatedly:

    • Panic selling during sharp Nifty corrections, even in fundamentally sound stocks
    • Sudden entry into trending sectors after news cycles, often near temporary tops
    • Hesitation to re-enter after a small loss, even when the logic remains valid

    These aren’t irrational behaviors. They’re psychological defaults that emerge under pressure.

    The Most Common Behavioral Traps (And How They Show Up)

    You don’t need to study behavioral finance to notice these patterns. You’ve probably felt them. But naming them helps recognize them when they happen.

    1. Loss Aversion

    Losses feel heavier than gains feel rewarding. That’s why investors are more likely to hold a losing stock too long—hoping to avoid booking the loss—even if it no longer fits their strategy.

    1. Anchoring Bias

    This is when you fixate on a specific number—usually your entry price. “I bought it at ₹820. I’ll sell when it crosses ₹850.” Even if the market has changed, that anchor continues to guide your decisions.

    1. Confirmation Bias

    You believe a stock is good, and so you seek only information that supports your view. Negative indicators are dismissed, and overconfidence builds—not on fact, but on filtered inputs.

    1. Herd Mentality

    If everyone’s buying, maybe you should too. It’s a powerful, instinctive urge. We’re social creatures. But in markets, this often leads to late entries into overheated sectors or trendy IPOs.

    1. Overtrading

    When the goal becomes being right now, every price movement feels like a signal. Instead of following a plan, you chase outcomes—and activity replaces strategy.

    The Indian Context: Where Behavior Meets Market Structure

    Every country’s markets have unique rhythms, shaped by regulation, economic cycles, and cultural attitudes toward money.

    In India, several factors make psychological awareness especially important:

    • Retail surge: More first-time investors have entered post-2020, many with limited guidance.
    • Mobile dominance: Quick access often amplifies reactivity. One alert, one tap, one decision.
    • News intensity: Indian markets are closely tied to news flow—macro, monsoon, elections, or global cues.

    All this means investors are exposed to constant stimuli. And when everything feels urgent, decisions tend to get faster—and more fragile.

    Zebu’s approach has always been to offer tools that de-escalate, not excite. Because thoughtful investing doesn’t thrive in noise.

    What Real Investors Often Say (That Reveal Mental Triggers)

    We’ve spoken to traders and investors across India who’ve said things like:

    • “It was doing fine, but I saw others exiting on Twitter, so I did too.”
    • “I wanted to wait, but I couldn’t ignore that 6% drop—it made me uncomfortable.”
    • “I doubled down because I didn’t want to be wrong twice.”
    • “It hit my target, but I didn’t sell. I thought it had more room.”

    Each of these lines tells a story—not about the stock, but about the mind behind it.

    No algorithm or technical tool can replace that inner voice. But understanding it can help you respond with more steadiness, less sway.

    Psychology Isn’t a Problem to Fix—It’s a Lens to Use

    Rather than trying to remove emotion entirely, the goal is to recognize it. To notice when it’s in the driver’s seat. To pause, even briefly, and ask: Is this decision based on what I see—or what I feel?

    Zebu’s platform encourages this reflection quietly. We don’t send urgent buzzwords. Our interface doesn’t reward clicks. We offer data, cleanly—so you can bring your own lens to it.

    Because calm decision-making doesn’t come from information overload. It comes from clarity of thought, paired with structure.

    Building Emotional Awareness into Your Approach

    Here are small, structural ways investors begin to engage with their psychology—without turning it into a project:

    • Pre-commit to thresholds: Not just price points, but reasons for exiting—profit, loss, or time-based.
    • Write down logic before entering a trade. If you’re about to act impulsively, check if the original reason still holds.
    • Track your own behavior, not just stock performance. Which trades made you anxious? Which ones felt calm? That tells you more than returns.
    • Take breaks from checking—especially during high volatility. Watching each tick doesn’t make you more informed, just more reactive.

    These are habits, not hacks. They develop over time, with intention—not pressure.

    Final Word

    Trading and investing are not just technical activities. They’re emotional journeys. Each decision—buy, hold, exit—is shaped by beliefs, patterns, reactions. Most of them unconscious.

    But with observation, that unconscious layer starts to shift. It becomes visible. And once visible, it can be worked with.

    At Zebu, we believe trading psychology isn’t something separate from investing. It’s right at the center. The better we understand how we behave around markets, the more clearly we can move through them—on our own terms.

    Not every trade will be calm. Not every investment will go as planned. But if your decisions are anchored in awareness—not impulse—you’re already trading with a different kind of edge.

    Disclaimer

    This article is intended for informational and educational purposes only. It does not constitute investment advice or a recommendation of any kind. Individual investment decisions should be made with consideration of one’s financial goals, risk tolerance, and in consultation with certified advisors. Zebu does not assume responsibility for any investment outcomes based on psychological interpretations or behavioral trends discussed in this article.

    FAQs

    1. What is the psychology of trading?

      The psychology of trading is about understanding how your thoughts, emotions, and biases affect your buying and selling decisions in the stock market.

    2. What is the psychology behind investment decisions?

      Trading and psychology are closely linked—investors often make choices based on fear, greed, or herd behavior rather than facts.

    3. What are common psychological biases in trading?

      Biases like overconfidence, loss aversion, and confirmation bias are common in the psychology of trading and can lead to mistakes.

    4. How do emotions influence investment decisions?

      Stock market psychology shows that emotions like fear and excitement can cloud judgment, making investors buy high and sell low.

    5. What are the emotional biases in trading?

      Emotions trading often involves fear, greed, and hope-these can override logic and affect profits if not managed carefully.

  • The Art of Letting Go: When to Exit a Trade Without Regret

    Every trader enters with a reason. A setup. A signal. A hunch. Sometimes it’s technical—maybe a breakout or a moving average crossover. Sometimes it’s just a feeling backed by some buzz. Either way, the act of entering a trade is intentional.

    Exiting, though? That’s where things get messy.

    If you’ve ever held onto a losing trade longer than you should have—hoping, rationalizing, bargaining—you’re not alone. Letting go of a trade isn’t just a technical decision. It’s deeply personal. It’s emotional. It’s human. But if you want to grow as a trader, learning when and how to exit—without clinging, without regret—is one of the most powerful skills you can build.

    Why Exiting Is Harder Than Entering

    There are plenty of strategies to get into a trade. Some people scan for technical setups. Others follow news or earnings reports. But once the trade is live, the mind takes over.

    • “Maybe it’ll bounce.”
    • “It’s just a minor pullback.”
    • “I’ll add more and average down.”
    • “Let me hold until tomorrow and then decide.”

    We turn short-term positions into long-term hopes. Not because the market changed—but because we did. That shift, from strategy to emotion, is where most exits go wrong.

    The Real Question Isn’t “When to Exit”—It’s “Why Are You Still In?”

    There are only a few valid reasons to stay in a trade:

    • Your thesis is still intact
    • The chart still supports your entry logic.
    • Your stop-loss hasn’t been hit.
    • You have a clear exit plan and it hasn’t triggered.

    Everything else? It’s noise. It’s ego. It’s fear of loss or missing out. And if you’ve forgotten why you’re still in, that’s your cue. You’re not in control anymore.

    Using Tools to Take Emotion Out of the Exit

    Good platforms—including brokers like Zebu—offer tools not just for placing trades, but for managing them. Features like:

    • Stop-loss orders
    • Trailing stops
    • Target-based exits
    • Real-time alerts

    The idea isn’t to automate everything. It’s to externalize your discipline. To make decisions when you’re calm, and let those decisions execute when the market moves. Because it’s easier to think clearly when you’re not under pressure. Setting a stop-loss when you enter is simple. Making that same decision while staring at a red candle? Not so much.

    The Difference Between Being Wrong and Staying Wrong

    This might be the most important thing. Being wrong is part of trading. Even the best traders lose money on a regular basis. But they don’t stay wrong. They don’t let one mistake compound into many. If your trade has violated your setup, or moved well beyond your risk limit, the mature thing isn’t to defend it. It’s to exit it. You’ll have other trades. But only if your capital—and your confidence—survives this one.

    Common Exit Mistakes and How to Spot Them

    Let’s name a few behaviors that ruin exits:

    1. Revenge Holding

    You’re in the red, and you’re mad. Instead of exiting and re-evaluating, you decide to “wait it out” out of spite. You stop looking at charts and start looking for hope.

    1. Overconfidence After a Win

    You made a profit on your last trade, so you get sloppy. You don’t set a stop this time. You think you’re on a streak. That arrogance gets expensive fast.

    1. Confirmation Seeking

    The trade is going bad, so you seek out opinions that support your hope. Forums, influencers, news. Anything that tells you it’s “just a correction.”

    1. Loss Aversion

    You’d rather see a bigger loss later than book a small one now. Because booking a loss feels like admitting failure. But not booking it… doesn’t undo the loss. If you spot these behaviors early, you can self-correct. And if not, it’s a lesson for next time.

    Exiting a Winner Is Also Hard (Yes, Really)

    Losses hurt. But profits bring their own anxiety.

    • “What if it runs even higher?”
    • “I’ll just hold a bit longer…”
    • “I don’t want to exit too early and miss out.”

    We exit losers too late, and winners too early. Or we exit too soon, then watch it soar, and feel foolish. The key? Have a plan for both outcomes. Know your target as clearly as your stop.

    Maybe it’s a chart level. Maybe it’s a % gain. Maybe it’s a time-based exit. Doesn’t matter—so long as it’s yours.

    Trailing Stops: A Simple Trick That Helps

    One of the best tools for exits—especially in winning trades—is the trailing stop-loss. It moves your stop level up as the price rises, locking in gains without forcing you to sell too early.

    Example:
    You buy at ₹100. You set a trailing stop at ₹5. If the stock hits ₹110, your stop rises to ₹105. If it drops, you exit at ₹105 with a ₹5 profit. You ride the trend, protect the gains, and remove the “should I exit now?” anxiety. It’s not perfect. But it’s better than panic.

    The Broker Matters More Than You Think

    Fast execution, reliable platforms, access to mobile trading tools, and flexible order types matter when you’re trying to exit cleanly. If your platform freezes or lags during volatile moments—or doesn’t offer limit orders or easy access to stop-loss settings—you’ll hesitate. And hesitation costs money. This is why serious traders don’t just pick brokers on low fees. They look at stability, support, and risk control features.

    Zebu’s platform, for example, offers not only speed and clarity, but also allows users to build a structured routine around risk management—something many discount brokers fail to prioritize.

    What About Regret? Can You Avoid It?

    Here’s the honest truth: You probably can’t. You’ll exit a trade and watch it soar the next day. Or you’ll hold a bit longer and see it reverse sharply. The market doesn’t operate to validate your timing. So the goal isn’t to avoid regret. It’s to build confidence in your process, so regret doesn’t derail your next decision. Exit with clarity, not perfection.

    Final Thought: Letting Go Is a Sign of Strength, Not Weakness

    Exiting a trade isn’t giving up. It’s staying in the game. It’s protecting your capital. It’s admitting that your time and energy are more valuable than forcing a setup to work. Good traders cut losses early, let profits run (but not forever), and exit because the plan says so—not because their emotions scream louder. That kind of discipline isn’t built overnight. But with each thoughtful exit, it becomes more natural.

    So the next time a trade turns sour—or sweet—ask yourself, am I staying in because it makes sense? Or just because I’m afraid to let go? That question alone can save you a fortune.

    Disclaimer

    This blog is meant to provide general information and reflect broad market observations. It doesn’t take into account your specific financial situation or investment needs. Zebu shares this for educational purposes only and doesn’t promise returns or make personal recommendations. Before you act on anything here, it’s always a good idea to talk to a qualified financial advisor.

    FAQs

    1. What is the best exit strategy for trading?

      A good exit strategy balances risk and reward. Use stop-losses, trailing stops, and profit targets while following trading psychology to stick to your plan.

    2. How do I know the right time to exit a trade?

      Exit when your trade meets your profit target, hits a stop-loss, or when market conditions change, rather than guessing or reacting to emotions.

    3. What if the trade moves against me right after I exit?

      It happens. Accept that no strategy is perfect. Focus on consistency and risk management, not on “what could have been.”

    4. Should I set a fixed profit target before entering a trade?

      Yes, setting targets helps you stay disciplined and prevents emotional decision-making during the trade.

    5. How can I control emotions when exiting a trade?

      Stick to your pre-planned strategy, use stop-losses, and remind yourself that losses are part of trading.

  • The seven best books for mastering intraday trading strategies

    Intraday trading can be a challenging and rewarding pursuit, and learning from the experiences and insights of others can be a valuable way to improve your skills and strategies. In this article, we will discuss seven of the best books for mastering intraday trading strategies. Whether you’re a beginner looking to get started or an experienced trader looking to hone your skills, these books offer valuable insights and practical advice for traders at all levels.

    “Technical Analysis of the Financial Markets” by John J. Murphy: This comprehensive guide to technical analysis is a classic text that has been helping traders understand and apply charting and other technical tools for decades. Murphy covers a wide range of topics, from basic chart patterns and indicators to more advanced techniques such as Elliott Wave analysis and intermarket relationships.

    “The Disciplined Trader” by Mark Douglas: This bestselling book offers a unique perspective on the psychology of trading, exploring the mental and emotional challenges that traders face and providing practical strategies for overcoming them. Douglas focuses on the importance of discipline and consistency in trading, and offers valuable insights on how to develop a winning mindset.

    “Day Trading and Swing Trading the Currency Market” by Kathy Lien: This comprehensive guide to trading the currency market is written by a highly respected forex analyst and trader. Lien covers a wide range of topics, from basic concepts and technical analysis to advanced trading strategies and risk management. She also provides valuable insights on global economic trends and the factors that drive currency movements.

    “How to Make Money in Stocks” by William J. O’Neil: This classic text by the founder of Investor’s Business Daily offers a unique approach to stock trading based on the principles of supply and demand. O’Neil provides a step-by-step guide to identifying and trading the best stocks, and offers valuable insights on how to manage risk and maximize profits.

    “Trade Your Way to Financial Freedom” by Van K. Tharp: This comprehensive guide to trading psychology and money management is written by a leading expert in the field. Tharp covers a wide range of topics, from the mental and emotional aspects of trading to risk management and position sizing. He also offers valuable insights on how to develop a winning trading system and stick to it.

    “The Complete Guide to Day Trading” by Markus Heitkoetter: This comprehensive guide to day trading is written by an experienced trader and CEO of a leading trading education company. Heitkoetter covers a wide range of topics, from basic concepts and technical analysis to more advanced trading strategies and risk management. He also provides valuable insights on how to develop a trading plan and stick to it.

    “The Little Book of Trading” by Michael W. Covel: This concise guide to trend following is written by a leading expert in the field. Covel covers the basics of trend following, including how to identify trends, manage risk, and maximize profits. He also offers valuable insights on the psychology of trading and the importance of discipline in achieving long-term success.

    In conclusion, these seven books offer valuable insights and practical advice for mastering intraday trading strategies. Whether you’re just starting out or looking to improve your skills, these books can provide valuable guidance and inspiration for traders at all levels.

  • How To Keep Your Emotions In Check While Trading

    How To Keep Your Emotions In Check While Trading

    On their way to becoming market masters, stock traders go through different stages. One of the hardest things to learn is how to trade without letting your emotions get in the way. You can be good at picking stocks and managing risk and still fail as a trader if you can’t keep your emotions in check.

    When you know how to control your emotions, you can be patient with your winners and not at all with your losers. Even though it seems easy to say that you should stick to your trading plan, it is actually much harder to do so. Most of us have strong feelings about money, which makes it hard to stick to our rules.

    To do this, you have to take the money out of the picture. Financial risk can’t be a factor in making decisions. It might be hard to incorporate this ideology while trading but you can remove the emotions from trading only if you are able to get this right.

    Here are some ways to trade without letting your emotions get in the way:

    1. Don’t put yourself in more risk than you can handle.

    Most traders keep their losers too long and sell their winners too soon because they take on too much risk. Taking on too much risk ties down your risk management, making it harder for you to make trades with a positive expected value.

    This is something you can change by taking less risk. Then, many traders find that the upside isn’t enough to make them want to trade at all. If a trader doesn’t have a way to make good profits with the money they have, they may start to take on more risk to try to get better results.

    But you can make your trades more likely to go up without taking on more risk if you scale into your positions. As the trade goes in your favour, add to your winners. You don’t need to put yourself in danger by doing this. You can lower the risk of your other positions by using the money you made from your first positions. Add to the list of winners. Don’t throw money at your losers.

    2. Change how you think about money

    We often tell people that it’s best not to look at the summary of their trades’ profits and losses. When you do this, you get too caught up in the current gain or loss on your positions, which makes your fear or greed about the trade worse. Instead of making decisions based on the chart, think about the money.

    People can’t be expected to trade without checking to see if they are making or losing money. So, if you have to look at your trades, instead of focusing on how much money you are making or losing right now, think about how much money you will make or lose if your trade hits the stop loss levels.

    If you buy 1,000 shares of a stock for Rs 100 and the stop is at Rs 90, you could lose Rs 10,000. That’s how much you could lose when you leave.

    Let’s say that this stock goes up to Rs 120 and you move your stop to Rs 110. Even though your position is up Rs 20,000 right now, if you get out on the stop, you will only make Rs 10,000. You need to pay attention to the number that matches your exit point. Don’t think too much about where you are now.

    If you congratulate yourself on making Rs 20,000 on a trade, you start to feel something about that number. If so, you are less likely to sell the stock if it goes back down to Rs 110, where you would only make Rs 10,000. You thought you would make Rs 20,000 and hoped it would be more. It hurts to leave at a lower price, so many people stay and wait for things to turn around. Count on what you already have, not what you want.

    3. Make a plan on paper and trade it

    Some people can lose their minds because of how they feel about a trade. When you make a trade, your feelings can make you break your trading rules. Having a plan written down will help you stay on track when you get lost.

    The plan doesn’t need to be long or hard to understand. A trading plan shouldn’t be longer than one page, in our opinion. It should include your rules for entry, risk management, scaling, and leaving the business. There should also be a review process so that you can work to make your rules and how they are carried out better.

    When you write down an idea, it gives it more value. Before you make another trade, take the time to write out a plan.

  • Want To Win Over The Market? It’s A Game Of Psychology

    For many investors, the stock market today opens up a world of chances. But if you don’t know how to handle the ups and downs of the markets, it can be a dangerous place. To trade well in any financial market, investors need a set of skills. The skill set should ideally include the ability to evaluate the basic technical aspects of any company and to figure out the direction of a stock’s trend. But neither of these skills is as important as the way a trader or investor thinks.

    Sometimes it seems like stocks have their own minds, but investors need to keep their emotions in check, think on their feet, and trade with discipline and care. This is where “trading psychology” comes into play. Your state of mind has a lot to do with how you make decisions and act on the trading floor.

    Are you looking for the best trading platform? Look no further. At Zebu, as one of the top brokers in share market we offer the best online trading platform to make your trading journey smooth.

    When you, as an investor, are in the stock market today, you need to keep your feelings in check. If you understand these, you’ll be able to trade well and reach your goals. Two of the most important emotions you need to control are greed and fear. Greed is driven by the desire to make more money, and fear is driven by the worry that you might make the wrong choices. If you can keep these two bad feelings in check, you will not only win the mental battle with the stock market but also the war.

    Getting things done quickly

    When you have to do different things in the stock market, you should know what emotions are involved so you can control them. Traders and investors need to be able to think quickly so they can act quickly. It takes a clear head to be able to jump into and out of stocks at the last minute. Investors also need the discipline to stick to their plans for trading and investing. They should know exactly when to start making money and when to stop losing money. In reality, emotions get in the way of these actions when they get in the way.

    What’s the deal with fear?

    When you’re an investor or trader on the stock market in real-time, it’s hard to keep your feelings out of it. If you want to be successful at trading and investing, you should be able to keep your emotions, which are the only thing that drives sentiment, under control. Often, while trading is going on, bad news about a certain stock will come out. You might even hear that the economy as a whole is in bad shape. This is when investors become fearful. This could cause you to sell your stocks, which would force you to sit on your cash and keep you from taking more risks. As a result, you may avoid losses but may lose out on gainful returns.

    When investors and traders see a threat that may or may not happen, they often act quickly out of fear. Here, you might act without thinking when you think there is a threat to your chance of making money. If you want to trade and invest, you should know that situations like this can happen. So, you can prepare yourself mentally.

    Keeping greed under control

    There is a saying that suggests that greedy investors on Wall Street usually end up losing money. This is about investors who are too greedy and tend to hold on to a winning position for too long. These investors want to take advantage of a stock’s winning streak until the price goes up one more time. What they don’t expect is that the stock will take a sudden turn for the worse and fall in a flash.

    Greed is hard to get rid of, and most investors don’t start out greedy but tend to become greedy as they go. Greed comes about because people want to do better. But trading should not be based on whims and impulses; it should be based on facts.

    Rules are the best

    Several experienced investors will tell you that it’s easy to make rules, but it takes a lot of mental strength to follow them. When people act on impulse instead of following the rules, they tend to break them. Investors may or may not make money on the stock market today, but when it comes down to it, they must stick to their rules. Right from the beginning, you need to set some rules. These must be based on your risk/reward tolerance and tell you when to enter trades and when to get out of them. A stop-loss should be put in place after a profit goal has been set. All of this takes the feelings out of trading and investing.

    Reason and research help people win wars

    Traders can get through a day of trading with ease if they use logic and reason. Also, investors and traders can choose which events will make them decide to sell or buy stocks. You should also decide how much money you are willing to lose or win in a day. If you have reached your profit goal, it makes sense to stop trading right away.

    All of this is, of course, governed by rules, and the most important thing is to follow the rules and be reasonable. Trading and investing in stocks is not scary, and you can do it by opening a demat account with Zebu. When you do research on a stock, you can also learn about the stock’s trend. In the end, it’s up to you if you want to use the stock market as a battleground or a place to play.

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