Trading Emotions

Trading is an Emotional Game.

As human beings, we experience a wide range of emotions. And when it comes to the matter of money, we experience these emotions on an even more intense level.

The hard part of trading actually comes from within ourselves, more specifically our emotional selves. 

Once we put our hard-earned money into the market, our emotions take over. We start to have second doubts about what we have done. We question ourselves:
• Is the analysis correct?
• What if I lose everything?
• What if the tip turns out to be false?

The reality is, trading is a simple matter of putting some money into the market. It is our emotions that make our trading hard. To keep trading simple, we remove as much emotions as we can from our trading practice. In order to do this, we use a Roadmap and follow the Trading Rules! 

RoadMap

The reality is, trading is as simple as driving a car. 

We start off from our homes. We start the engine and drive to work. Along the way, we may negotiate traffic lights and highways. We know where to go because we have a road map. We arrive safely at work and we get off. Simple.

The same goes with trading. We have a starting point, our initial capital. We have an ending point: one million dollars in 3 years or less. To get there, we use options trading as our investment vehicle of choice (our ‘car’). As we are trading our options, we negotiate both financial red lights (bad picks) and highways (good picks) as well.

1. Driving a Car: When we first learn to drive a car, remember how nervous we were? This is because it is a new experience. However, with enough experience under our belt, it is now second nature. This is the same with trading options. We might feel some apprehension at first, but with some experience, the confidence would naturally come.

2. Negotiating the Roads: We stop at red traffic lights (the rules). What if we decide not to follow this rule? It is most likely that the big truck from the other direction may hit our car! Likewise in trading, we follow our Trading Rules. These trading rules seek to keep us on the “correct side of the traffic” so that our investment vehicle is protected.

3. Road Map: The only problem is, there is a lack of detailed roadmap provided in options trading education. This is where we spend a lot of time in the wilderness. For example, if someone took away all the road signs and then asked us to drive from Los Angeles to New York, it would us a very long time to find our way!

This website seeks to give us the equivalent financial road map for options trading. With it, our investment vehicle (options trading) is able to get us from our starting point (our initial capital) to our final destination (our 1 million dollars) in a reasonable timeframe (3 years or less).
 

Next, let us understand what are the Trading Rules we should be following in order to make money ...

Next: Trading Rules ...