Stock Doc: Trust Your Instincts

It is very easy to let the volatile nature of the markets dictate your emotions. The fast, wild rides up and down are enough to induce a kind of mental motion sickness.

When you experience success with your trading, your confidence remains intact and you can make decisions on future trades without second-guessing yourself.

When a trade or investment goes bad, however, perhaps resulting in a give-back of an entire week's worth of returns, the mind's natural reaction is to create thoughts that trigger fear and worry. You may freeze up, give up for the day, or even worse, begin to doubt your competence as a trader. ...