The shorter the time frame the more emotional stock market investing can be, so for instance, a day trader is far more likely to get confused and make mistakes, than a swing trader or long term investor.

It’s the notion that ‘I am running out of time and I have to act to limit my losses’. Every emotion is triggered on the individual by price action, sudden, volatile price moves and news releases and breaches of support and resistance.

Here are some common myths that play a part in investor psychology when stock market trading…

Never Allow A Profit To Turn Into A Loss – Myth

All positions start out as losing positions, believing this rule is a sign that you are an emotional trader who cannot stand to see an open losing position.

Have A Strict Trading Plan And Be Disciplined – Myth

Money management rules should apply, but you should trade the markets and not money. Instead of having a fixed stop loss size you should pay attention to resistance and support levels, one day you need to risk $100, and on another you need to risk $500 on these stop loss orders.

If you are too disciplined, you will self sabotage yourself as the markets will often make confusing moves that will go against your strict rules. Instead you should identify the uniqueness of each trading day, and the unique support resistance levels that apply to it.

Place Your Stop Below Yesterday’s Low – Myth

Floor traders intentionally drive the market lower to shake out these stops, once shaken out, the market