InsaneJournal

Trading Guide - Are You Currently A Dumb Dog Stock Trader
The fact is, it really is canine dumb.

This is just what a lot of traders do. All they know is a single market, gold mining stocks for instance, although they have lost money trading in this market, or have overlooked gains in other sectors. They just consistently purchase the same stock or market as the losing trades pile up.

Now calm down you gold bugs who troll my video lessons. Most people love to give human emotions to non-human things. In fact, it is a very human thing to do. We have even conceived a word for the exercise of assigning human feelings to every little thing: anthropomorphism.

You'll notice investors declare stuff like: she is my favorite stock, or I really like this baby.

Once human emotions have been allotted to a stock, harmful attachment to the stock or market arises, and traders will lose money repeatedly.

Never ever designate human characteristics or feelings to a stock and grow too attached to it.

Check yourself and ask, am I getting to be too emotionally involved with this stock? Do I continue to keep purchasing this stock because it really is making me money or have I developed an unhealthy attachment to this stock influenced by setting emotions to the stock of like, love, baby, and so on.

Like the old cliché goes, don't try to beat a dead horse. Let your losers go as fast as you can and get over it.

There's a viral video out there that shows a pet dog in Japan still defending his house although the home is completely gone and just the concrete basic foundation remains. This is an example for how trying to make money in the same stock repeatedly makes you look mindless and can truly damage your brokerage account.

Think you're a dumb dog trader?

This is exactly how a number of amateur investors are. Many people won't move on to a better stock or market simply because they have formed emotional attachments to a stock or market. I have seen investors hold on to a stock that has gone totally worthless and has turned into an empty shell simply because they won't let go of their dream that this stock, their baby, would turn them into a millionaire.

Even skilled traders can get caught in this trap by scrutinizing a company's press releases. Bear in mind, press releases aren't news. Even knowledgeable investors quite often overlook this and get psychologically attached to a story stock. But it is not only fundamental analysis that may get a trader falling in love with a stock. Technical analysts can also get caught in this trap by getting attached to their favorite chart pattern which they absolutely love. As the trade moves against them, they hang on to long due to the fact they've formed an attachment to a pattern on the stock chart.

Forming psychological attachments to things is part of being human. Constantly ask yourself if you are building an unhealthy psychological attachment to a stock or market. Continually try and keep your emotions at bay when trading. Consider Spock on Star Trek. Now there's a fictional temperament which would make for an excellent stock trader.

To read more educational stock market lessons see:
Stock Trading Prediction For Week Beginning March 21 2011
Great Penny Stocks For Dummies and Idiots Satire