Before you trade it is very important for you to know that the Stock Market is the most convenient place to earn hard money. It is accessible by anyone and everyone but not all can earn money from this. It is very important that you keep the following psychology or thoughts in your mind –
Market is always Supreme
Be sure that whatever price the market decides, it is the supreme. Why? Because there is no way that you, individually, can influence the price movements. A huge bunch of buyers and sellers trading on the markets decide the price movements. Hence, you have to accept it. You cannot argue it being right or wrong.
Never go against the market, Flow with it
This is one of the most common mistake people make. Usually they say to themselves – If the market is making a new high; I will Short it. They fail to understand or evaluate the reason behind the market making a new high. Thus, they are trapped and ultimately end up making losses.
What you ought be doing is flow with the market so that you are always on the right side of the market.
You are in a Business; Keep emotions aside
Emotions can be your biggest enemy if you bring it along with you on the trading table. These emotions include greed, fear and favoritism.
Greed makes you hold or want more due to which you miss the price at which you should have sold the stock .
Fear prevents you from buying a particular stock which is cheaply available at the moment.
Favoritism towards a stock inspires you to buy a stock without evaluating its price, trend or volume. This leads to a wrong entry.
Either way you loose a chance to mint profits.