Should I talk about the successes?
Sometimes traders might be tempted to talk about the successes they achieved. Or the failures that they suffered. In my opinion, traders should not be told about the results of their trade – about profitable, nor an unprofitable. The fact is that by sharing with friends information about their transactions, the speculator can get into one of the psychological pitfalls that adversely affect the subsequent trade.
Trade – potentially – a very emotional process. Therefore, traders often have a need to discharge, to share with others the joy or sorrow. On the traders’ forums often you can find complaints about the paper or currencies that did not go to the right place, as well as positive comments from the detailed description, when the trade was opened, when closed, and how much profit it has brought. I want to pay attention to what impact this may have on trading information from a psychological point of view.
And in the mountain …
Of course, the loss of their traders talk less. Simply because failure is divided not so nice. Indeed, there is something strange in the desire to talk about what you “loser” friend (if he is not a professional psychologist). If you do tell your friend about loss, it is likely to try to cheer you. Do you need such a reaction to the defeat? Would not it’s an incentive to play in the future ?!
There is nothing wrong in the analysis of losing trades, but if you use these stories to get sympathy, it can lead to much worse consequences in the future.
… and in the joy
Traders are much more likely to talk about the successes. Imagine that you opened the position, and the paper has gone in the right direction. It is hard to resist, not to talk about success, not boast of his luck. But what would happen if the paper suddenly unfold? Do you tell your friend about it when you meet him next time?
It often happens that in this case the trader fails to mention that its profits “evaporated”, and try to wait until the next meeting. Maybe by the time the paper again move in the right direction it ?! Even worse, if he told a friend that “paper is temporarily rolled back, but probably still will grow, so it is worth even more to purchase shares until they fell.”
You can imagine the results of such behavior. Now the trade is determined not by rigid rules and a desire to prove their case friend. Or to prove something to himself. A whole bunch of motives, none of which has no relationship to successful trading. As a result, a trader will take profits too early and long to hold losing positions – a classic mistake in trading.
And if the deal is closed?
Once I explained to my friend, is why in his best interest not to talk about the success in trading. He was upset at first, and then came up with a “solution”: just tell me about the already completed transactions. It is not difficult to guess what would it lead – he would have to close their positions early, eager to share their experiences.
In other words, even in this case, psychological factors will distort decisions in stock trading. Therefore, in no case do not tell about the successes and failures in trading. And do not invent exceptions – that you are only fooling yourself.
Loss conclusion: Trade – a very emotional process, so I need to somehow “discharged”. You just need to be careful – do not say specific figures, and all will be “OK”.
Profitable conclusion: Talking about the success (or failure) in the trade, you are misrepresenting their motivation for opening and closing deals. When properly organized trade you do not need to seek approval or support from others.
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