It is alleged that ninety out of every hundred traders lose money. It is also stated that day trading is around 75 is shared between your trading system and proper money management.

Now I do not say that these facts are either true or false., but let us assume that it is possible. This would mean therefore that almost all traders are lacking knowledge in the area of psychology when it comes to trading in the stock market successfully.

Therefore we need to observe very carefully at how we are feeling, and also what we are thinking while we are trading on the stock market.

All our trading activities are governed by the emotions of fear or greed or if you prefer the feelings of pleasure or pain. Whatever we do, we do it to either to experience pleasure or to avoid the feeling of pain and anguish.

We really need to take a good look at ourselves and decide what is it that is driving us while we are share trading is it pleasure or is it pain?

For instance, Do you dive into every trade even when the basic fundamentals are not quite right, just because you might miss out on the next big rise in the share price?

Or on the other hand is Fear causing you to not enter a trade even when everything looks exactly perfect, because even the slightest possibility of losing your money is just too much to think about. So you sit there and do nothing, paralised with Fear. Or when you do decide to enter the trade, your stop losses are placed on so tight you hardly ever make any profit at all.