Trading Attitude

We act differently when we are trading 100 share of 10$ price and 10000 share of same stock. People behave differently when they have five or more consecutive winning trades and losing trades. Some time we trade aggressively by betting more on one trade, increasing the frequency of trade. And conservative sometime by trading in small lot and trading less often.

Sometimes we get trapped in one bad trade. We reach at the peak of loss in our capital (maximum drawdown). We feel so bad that we even don’t check the price of that stock for weeks. This is enough to demonstrate how emotion affects our trading attitude. Emotions are not just the weakness of human, they can also be our most powerful strength if we adapt them to the condition.