Even great traders struggle with their inner demons from time to time. Those demons generally are fear, greed or regret. Your personal trading psychology affects every trade entry and every trade exit that you make. Every great trader has a deep understanding of his/her psychology.
The more you develop the traders mindset, the quicker you will confront your demons and the more success you will have in slaying them. In your journey from a novice trader to a master trader, you will have to keep an eye on your trading psychology.
There are certain traits that help traders and investors make consistent profit in the markets. Some of these traits will come naturally to you as a trader. However, others you will need to cultivate and acquire. Now this is what you feel when you acquire the traders mindset:
a. You will start believing in your trading system and stop worrying about the money. b. You will accept risk in trading and investing. Trading and investing are inherently risky. c. You will accept winning and losing trades equally as a part of trading. Even great trader cannot avoid a losing streak. d. You should try to make trading enjoyable. In the end you will start enjoying trading. e. You wont feel being victimized by the markets every time you lose. f. You will be always looking to improve your skills. Learning is a continuous process. g. The trading profits will start flowing into your bank account as your skills improve and begin accumulating. h. Markets will always be unpredictable. You will want to keep your opinions to the minimum. You will be more open minded in your reading about the markets with experience. i. Your skills will improve with each trade. You will want to learn from every trade or position. j. You will try to try to flow with the market and align trades in the direction of the market.
These are the lists of some destructive emotions that you will have to face when trading:
1. Fear of taking a loss and the fear of being stopped out. 2. Getting out of the trades too quickly. 3. Wishing and hoping that you will make a winning trade. 4. Anger after a losing trade. 5. Trading with borrowed money or trading with money that you cannot afford to lose. 6. Adding on to a losing position. 7. Compulsive trading 8. Excessive joy after winning a trade 9. Poor trading accounts profits. 10. Not following your trading system. 11. Second guessing your strategy. 12. Not trading the correct trade size. 13. Trading too much. 14. Afraid to trade 15. Irritable after the trading day.
When you find one of these emotions in yourself try to isolate and defuse it. Try to take a look into the mirror and see if you are experiencing any of these destructive issues. This exercise will help you identify your strengths and weaknesses.
In essence, getting the Traders mindset is getting to a place of profitability, peace and bliss. Once you have identified a certain destructive emotion present in you, try to write it down and find a solution. Just the action of writing it down will help you bring one step closer to nirvana. - 23309
The more you develop the traders mindset, the quicker you will confront your demons and the more success you will have in slaying them. In your journey from a novice trader to a master trader, you will have to keep an eye on your trading psychology.
There are certain traits that help traders and investors make consistent profit in the markets. Some of these traits will come naturally to you as a trader. However, others you will need to cultivate and acquire. Now this is what you feel when you acquire the traders mindset:
a. You will start believing in your trading system and stop worrying about the money. b. You will accept risk in trading and investing. Trading and investing are inherently risky. c. You will accept winning and losing trades equally as a part of trading. Even great trader cannot avoid a losing streak. d. You should try to make trading enjoyable. In the end you will start enjoying trading. e. You wont feel being victimized by the markets every time you lose. f. You will be always looking to improve your skills. Learning is a continuous process. g. The trading profits will start flowing into your bank account as your skills improve and begin accumulating. h. Markets will always be unpredictable. You will want to keep your opinions to the minimum. You will be more open minded in your reading about the markets with experience. i. Your skills will improve with each trade. You will want to learn from every trade or position. j. You will try to try to flow with the market and align trades in the direction of the market.
These are the lists of some destructive emotions that you will have to face when trading:
1. Fear of taking a loss and the fear of being stopped out. 2. Getting out of the trades too quickly. 3. Wishing and hoping that you will make a winning trade. 4. Anger after a losing trade. 5. Trading with borrowed money or trading with money that you cannot afford to lose. 6. Adding on to a losing position. 7. Compulsive trading 8. Excessive joy after winning a trade 9. Poor trading accounts profits. 10. Not following your trading system. 11. Second guessing your strategy. 12. Not trading the correct trade size. 13. Trading too much. 14. Afraid to trade 15. Irritable after the trading day.
When you find one of these emotions in yourself try to isolate and defuse it. Try to take a look into the mirror and see if you are experiencing any of these destructive issues. This exercise will help you identify your strengths and weaknesses.
In essence, getting the Traders mindset is getting to a place of profitability, peace and bliss. Once you have identified a certain destructive emotion present in you, try to write it down and find a solution. Just the action of writing it down will help you bring one step closer to nirvana. - 23309
About the Author:
Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading stocks and currencies. Develop your own Forex Trading System. Get Netpicks Forex Signals Free!
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