Trading Technique

I attended a seminar last week that was trying to sell me a product called "HomeTrader" - I will blog about that company later - but for now the topic is about trading being a mind game. Trading shares, forex or any other equity involves what I call the "Trading Mind Game". As human beings we are influenced by our environment.

Looking over my past trades [there's a lot of them - over 70 buys and sells in a year... so about 35 total trades in 6 months - I took a 6 month breather - a "trading holiday"] there's a common theme that runs through all of the profitable trades. [I only lost out on a few so I've got many profitable trades to look at] The common theme is this: I get excited by the profits and so I close the trade way too early. This is done without any consultation of the charts or any second thought. Why am I doing this?

When you first start off share trading or share investment you probably aren't aware of the distinct differences between the two styles/branches of owning share equities. Investment in shares encompasses holding the stocks for extended periods of time. Trading encompasses holding the securities for short to medium periods of time. But that's is not the definitive differences between the two which is that share trading is a BUSINESS while share investing is not.