Trading Psychology – Entry & Exit


One of the major problems faced by people who enter into trading and which they continue to face till they become professional traders is the difficulty that they face in choosing the right moment to enter and exit trades. I am no exception and i have faced the same situation when i started out trading and it took me close to 4-5 yrs to get to the right moment to enter/exit trades.

The trick behind entering any good trade is to cut out the emotion behind the entry. Normally what we do is that we see price rising and immediately, we are tempted into entering a long. The temptation is too strong. Guess what !! Thats exactly what the pros want you to do. Give in to emotions, give in to your temptations. They want you to trade emotionally. And the trick to be a successful trader is to do the opposite of what the pros want you to do. Why ? Cos thats what they do. They never enter on seeing rising prices.

Trading, as such, is very easy. All you need to do is to open a 1H or 4H or daily chart and you can easily see places where prices had reversed earlier and or had been well supported. All that you have to do is wait for price to reach such areas and take the trades accordingly. Its so easy on the face of it. But why do all of us struggle in doing this simple thing ? Its because of our emotions and our lack of discipline. We see a previous resistance being broken and price running up and we immediately jump into the bandwagon without noticing the simple logic that any good break will almost always be followed by a retracement back into the resistance region. We see price running up 50 pips after the break and we enter there and when there is a retrace back into the resistance region, we are down 50 pips, we get too scared and we close to escape more drawdown. Wat happens? Price simply moves up again to where we thought it would.

The key to successful trading is to control your emotions and have discipline. Wait for good entries, they are always there and will always be there. All you need to do is wait. Have patience, have discipline. You will succeed. I promise.

I do run a signal service with has a very highly unique offer which creates a win-win situation for all. If you are interested, please contact me through twitter or email ([email protected]).

Do follow me on twitter (http://twitter.com/ns_karthik ) where i post some of my trades in real time.

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  • Smitak111

    eu/gbp pair has shot past the lower trading range this afternoon…i think more downside to cover after ta retracement…do you agree?

  • Nice….i dont even know you (i really cant recognise you from your id) and i dont think i have treated anyone the way that you specify. If it was true and i am indeed a cheater, maybe you should have posted this when i started writing articles in here. Not sure why u chose to do it now. And if i am as bad as you point out, then i am not sure why you are following my articles.
    Also, you say that you received my signals for 1 week (demo) + 15 days (middle of the month) and then in the next sentence you point out that mine were profitable for a few months !! Even now, i never say that i use only Murray Maths. All that i say is that Murray Maths is another means of finding important price points and they cant be profitable by itself…

    I really suspect that you are one of those who just wants to criticise. If not, well, you have my email id, pls mail me, we will sort it out and we will post our email conversations over here to set the record straight…Deal?

  • Anonymous

    I do run a signal service with has a very highly unique offer which creates a win-win situation for all. If you are interested, please contact me through twitter or email ([email protected]).

    I subscribed to his signal service (after 1 week of demo). In the middle of the month he discontinued and promised to return the proportionate fees of the unused month which he never returned. After a few months, he started his service (through messenger) again and I drew his attention to his earlier promise but he simply did not care. I wrote emails to him and received no reply. To me he is a plain and simple cheater.
    BTW, initially his signals were profitable but later for a few months most of the signals incurred losses. This could be one of the reasons why he discontinued his signals. He claimed that he used Murray maths as an indicator which I don’t think he used.
    I request the owner of the site not to promote people like Karthik who takes money but does not provide service.

  • Krashid59
  • yes, Helen…that is sometimes a very good way to keep important things in mind…

  • Helen

    Wish I had read this earlier this morning before leaping in as usual. Thank you, I am going to print this off and stick it to the corner of the computer screen.

  • Patricio A

    Great article Karthik, like always. I’m trying hard to do this, wait for the pullback to take trades. It´s a good excercise for learn patience. Thanks for sharing