To plan a successful game – not a rocket launch. If the market turns against you, quickly close the position. Useless to argue with the crowd – better direct mental energy on the question of where to open a position, and where – out of the game. In a difficult moment your human nature will incline you to loss of independence. To speculate, you feel like doing everything, and lose sight of the objective picture of the game. It is therefore necessary to develop its own system of game, to strictly follow its rules and capital controls on the basis of independent decisions taken prior to entry in the stock-market crowd.
Why join the crowd? People from time immemorial to form groups for self-preservation. Hunting saber-toothed tiger crowd, its members have received a great chance remain intact. If you duel with the animal life of the hunter hung in the balance. Individual farmers and died more often, and leave fewer offspring. Collectivists have a chance to survive was more, and the desire to join was, apparently, innate property of human nature.
Our society highly values freedom, but a thin shell of civilization of the modern man carries a lot of primitive impulses. He wants to unite with others for self-preservation and operate under the guidance of a strong leader. The more volatile situation, the stronger the desire to join the others and follow the leader. By wilds of Wall Street do not wander saber-toothed tigers, but there is fear financial ruin. And the eyes of this fear is very high: it has no control over the dealer price change. Value of his position increases or decreases depending on the purchase or sale, which involved complete strangers. Such uncertainty pushes him to search for a leader who will lead the right way. Often the dealer, after weighing the pros and cons, decided to speculate on the rise or fall – but barely open position falls into the maelstrom of stock of the crowd. There several signs, which can be checked, do not make you sober trader from a 'stock tolpovika' – a hype, or a cold sweat. – You lose independence in thinking, when should the prices like a hawk for prey, when jubilant, if they follow your path and be discouraged if your paths diverge. You have come to rely more on the guru than by yourself? And in an outburst of feelings add money to a losing position, and then change the position opposite? This – also alarms. Another sign of lost independence – the violation of its own game plan. Noticing this, try to pull myself together. If self-control not to return, close the position, leave from the game.