NEW: Live classes are posted - Click here to see the calendar!

Why You Are Selling Your Stocks Too Quickly!

March 3rd, 2015

I've gotten a lot of emails from people who get into a position, then get out of the position far too quickly and the stock ends up going in my favor (either to the upside or downside) instead of where I projected or predicted.

Why am I getting out of these positions too quickly?

If you know and understand human behavior and the way our brain process works, you'll get an idea of why this is happening to you.

Three Brain Theory

Over hundreds of thousands of years, humans have evolved, changed and gotten more complex.

2015-02-19-why-selling-stocks-too-quickly.0030

First we had the Reptilian Brain which was tiny and mainly responsible for:

Fight or flight response (survival mode)
Mating

We still have this part of our brain in use today - mostly in survival situations or mating.

Then we an emotional part of the brain grew on top of the Reptilian Brain - we call this the Limbic (Mammal) Brain. It is responsible for:

Control of emotion
Human connection
Experiences connected with emotion

Finally, the Neo-Cortex grew on top of the Limbic Brain to create a more analytical, strategic brain. It is responsible for:

Strategy planning
Analysis

During trading - all three of the brains are used in certain situations. Most often, the Neo-Cortex is utilized for the strategy, analysis and planning. When someone becomes panicked during the trading process however, the Reptilian Brain kicks on and causes that fight or flight response. You have a panic sell order too quickly because of your panic and survival mode.

One way to overcome and combat this is to become aware that you're in the Reptilian Brain mind-frame. If you recognize that you're entering the panicked fight or flight mode, you'll be able to calm yourself down enough to use the Neo-Cortex part of your brain to make rational decisions instead. Instead of making trading decisions based on fear, when you calm down and use your Neo-Cortex brain, you'll be able to make strategic trading decisions. Some people do use their Limbic Brain to make these decisions as well, but if you would like to be more consistent in your trading decisions - it's best to stick with the Neo-Cortex part of your brain.

Author: Sasha Evdakov

Sasha is the creator of the Tradersfly and Rise2Learn. He focuses on high-level education speaking at events, writing books, and publishing video courses on business development, internet marketing, finance, and personal growth.

I'm Sasha, an educational entrepreneur and a stock trader. In addition to running my own online businesses, I also enjoy trading stocks and helping the individual investor understand the stock market. Let me share with you some techniques & concepts that I used over the last 10+ years to give you that edge in the market. Learn More

Join over 31,258 regular people who are bettering themselves in the stock market.

Click Here to Sign Up

This is a community that is motivated to learn & improve their skills.
Join us and get free training lessons, freebies, and exclusive promotions.

want some helpful advice?

pay per minute coaching

I am scheduling helpful coaching sessions for people who are interested in real-world advice & guidance where you only pay per session. No long term commitment required.

Learn more
This website and content is for information purposes only as Rise2Learn, TradersFly, and Sasha Evdakov are NOT registered as a securities broker-dealer nor an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Rise2Learn, TradersFly, and Sasha Evdakov cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Rise2Learn, TradersFly, and Sasha Evdakov in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Rise2Learn, TradersFly, and Sasha Evdakov accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.