ETF providers entice investors to new offerings with gain-enhancing features like “risk exposure,” “retirement solutions” and “investment strategies.” The list goes on.
But regardless of what you buy or what happens in the market, the outcome ultimately depends on what’s happening in your brain, says Janice Dorn, a financial psychiatrist and gold futures trader. Dorn has mentored or coached more than 600 investors/traders. She counsels that you must master yourself in order to master ETFs.
IBD: What proportion of your clients specialized in trading ETFs? And what were their most common problems?
Dorn: At least 40% of the traders I have mentored or coached trade ETFs and, of these, approximately 30% specialize or want to specialize in ETFs.
The chief complaint of most traders is that they are unable to make or keep enough money. They are failing, depressed, anxious and stressed. Their challenges manifest in several ways including: inability to take a trade, not cutting losses, taking profits too quickly, not adhering to stops, having no real concept of risk or risk management, and overtrading.
Full Story: http://finance.yahoo.com/news/Try-Putting-Your-Bad-Trades-ibd-14978969.html?.v=1