What is Trading Counselling?
Professional trading counselling sessions will be provided to enhance the skills, mindset, and performance of traders.
Trading counselling sessions will assess and improve trading strategies, risk management techniques, and emotional management tools. The sessions promote discipline and a focused mindset in traders.
Performance analysis will reveal areas for improvement, while educational resources will build knowledge. Trading counselling sessions will be an avenue to discuss challenges and receive ongoing support.
Here are four common challenges that you might experience as a trader:
1. Lack of knowledge
There’s a general lack of knowledge regarding the entire concept at the primary stage of a stock market. Trading has many complications, and all this requires you to have profound knowledge of all these concepts that begin to come into place, market dynamics, risk management, etc.
You should essentially do your research and enough learning on the basic ones such as fundamental analysis, technical analysis, trading strategies, etc.
2. Emotional responses
Another hurdle you will face as a new trader is overcoming your emotions. Greed, fear, anger, frustration, and excessive optimism would make you take impulsive decisions. As a result of these impulsive decisions, losses would be incurred. Losses can also reduce the confidence level. To avoid this trap of emotions, you can opt for trading counselling where the therapists will help you navigate and regulate your emotions.
3. Overtrading
Another challenge that might befall you is overtrading. You may want to overtrade to make higher earnings or cover losses faster. However, the more trades do not necessarily translate into more money. Overtrading increases risk exposure and also increases transaction costs.
4. Poor risk management
The stock market is extremely volatile. A stock can increase by 20 percent one day and crash hard the next day. It is nearly impossible to cope with these frequent changes in the price of an asset. Extreme changes in the prices of stocks also render it hard for you to prepare your strategy and as well manage risk. You would be very prone to chasing high returns and excessive risks, but it can wipe out your capital overnight. This is why risk management is of importance in trading.
The four biases that can influence traders are:
1. Availability Bias:
Availability bias is the tendency to open or close positions on information that is readily available rather than on sources that are hard to get. It will cause dealers or traders to make decisions while acting on false or unverified information, thereby heightening risk and loss levels.
2. Hindsight Bias:
Hindsight bias in trading involves the tendency whereby individuals will profess that they knew it all along, once an answer to the question or result of an occurrence is known when the same individuals were not quite sure beforehand. This usually follows with a misplaced sense of self-confidence.
3. Confirmation Bias:
Confirmation bias is where traders tend to look for information that confirms pre-existing beliefs or predictions and are more likely to put greater emphasis on such findings. This would mean that an asset trader does not pay heed to negative news about the asset but believes that “the good times outweigh the bad” – possibly when they actually do not.
4. Loss Aversion Bias:
Loss aversion bias is the preference of avoiding losses more than acquiring equivalent gains. This means that fear of loss is greater than pleasure of gain.
At Happy Lab, we don’t just offer trading counselling – we offer a partnership in your trading journey. Through one-on-one sessions, we create a supportive environment where you can openly discuss your challenges, celebrate your victories, and continuously evolve as a trader.
Remember, every successful trader you admire started exactly where you are now. The difference is in getting the right support at the right time. Ready to transform your trading journey? Happy Lab’s doors are always open for trading counselling, and your path to becoming a more confident, disciplined, and successful trader starts here.
After all, trading isn’t just about making money – it’s about growing as an individual and mastering both the market and yourself. And that’s exactly what we’re here to help you achieve through our trading counselling sessions.
