It is vital to adopt the correct trading psychology.
Here is a summary of observations which serve to highlight the kind of mindset you need to adopt for trading the stock markets.
There is no such thing as flawless trader and you should think of your trading experience in terms of enjoying you route to the target rather than the target itself.
Trading psychology is about learning and the experience you gain along the way, then success will take care of itself.
When you trade well, in accordance with you management plan, feel rightly proud of yourself but do not dwell strongly upon it and allow arrogance to set in.
Do not allow yourself to get caught up in positive or negative emotion, whichever way your trade goes, keep the trading psychology firmly in your sights.
No trade is guaranteed.
A winning streak breeds over confidence and ego.
Both will render you without your money.
A successful run will have the habit of deform your view of real life trading.
It is not about winning, winning is the stock in trade of gamblers.
It is all about trading well.
If your trade goes wrong it will torture you.
However agonizing it is though, you are far better off to let a good trade pass you by and be pleased you traded in accordance with your management strategy.
You should always assume responsibility in that you accept and appreciate the emotions and psychology of managing risk.
Work on your mental state, if a trade goes wrong, try and work out why it did and learn from it.
The markets are not tangible but a combination of the state of mind of traders.
All market movements are a result of their thinking, their trading psychology.
You should never trade without a solid reason because you will not beat the market.
Just because a price is low or high does not mean you should buy or sell accordingly.
If you miss a trade, like a bus, another one will be just around the corner.
Trading psychology is about judgment and analysis of both the market and yourself.
Learn trading methods well, but omit learning about yourself at your peril.
This is why there are so many losers trading the markets.
Greed and fear are your great enemies.
Sometimes life will deal you a psychological blow.
Mental scars are far more difficult to heal than physical ones.
This is why research, learning and preparation are so important, it is often rightly said that preparation is ninety percent of a job and trading is no different.
The better mentally prepared for trading you are the better you will trade.
Note my emphasis on better trading, not better winning.
Here is a summary of observations which serve to highlight the kind of mindset you need to adopt for trading the stock markets.
There is no such thing as flawless trader and you should think of your trading experience in terms of enjoying you route to the target rather than the target itself.
Trading psychology is about learning and the experience you gain along the way, then success will take care of itself.
When you trade well, in accordance with you management plan, feel rightly proud of yourself but do not dwell strongly upon it and allow arrogance to set in.
Do not allow yourself to get caught up in positive or negative emotion, whichever way your trade goes, keep the trading psychology firmly in your sights.
No trade is guaranteed.
A winning streak breeds over confidence and ego.
Both will render you without your money.
A successful run will have the habit of deform your view of real life trading.
It is not about winning, winning is the stock in trade of gamblers.
It is all about trading well.
If your trade goes wrong it will torture you.
However agonizing it is though, you are far better off to let a good trade pass you by and be pleased you traded in accordance with your management strategy.
You should always assume responsibility in that you accept and appreciate the emotions and psychology of managing risk.
Work on your mental state, if a trade goes wrong, try and work out why it did and learn from it.
The markets are not tangible but a combination of the state of mind of traders.
All market movements are a result of their thinking, their trading psychology.
You should never trade without a solid reason because you will not beat the market.
Just because a price is low or high does not mean you should buy or sell accordingly.
If you miss a trade, like a bus, another one will be just around the corner.
Trading psychology is about judgment and analysis of both the market and yourself.
Learn trading methods well, but omit learning about yourself at your peril.
This is why there are so many losers trading the markets.
Greed and fear are your great enemies.
Sometimes life will deal you a psychological blow.
Mental scars are far more difficult to heal than physical ones.
This is why research, learning and preparation are so important, it is often rightly said that preparation is ninety percent of a job and trading is no different.
The better mentally prepared for trading you are the better you will trade.
Note my emphasis on better trading, not better winning.
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