Archive for: December 2007

Trading Psychology - Trading Psychology Is All About Discipline and Patience

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 …

Trading Psychology - Adopt the Right Mindset for Big Profits!

The fact is the majority of traders lose because they cannot control their emotions. Trading psychology is one of the keys to investment success.

A simple fact will illustrate the influence of trading psychology:

Why the majority of traders lose

There is one statistic that has remained constant since the beginning of investment records - the ratio of winners to losers has remained constant over time.

On reflection, this would seem a startling fact; despite the massive advance in communications and economic forecasting methods, the ratio remains the same.

The conclusion from the above is that the successful trading is dependent on something else. That something else is our trading psychology.

The influence Of Hope and Fear

In trading psychology, two emotions that are constantly to the fore are hope and fear. One of the traders who recognised this was the legendary trader W D Gann.

“Hope and fear: I have written about this often in my books and I feel I cannot repeat it too often. The average person buys commodities because they hope they will go …

Forex Trading Psychology - Why Most Traders Can’t Acquire This Trait and Lose

It’s a fact that most traders lose because they don’t have mental discipline and the reason for this is quite complex in that to have discipline you have to have certain traits that are not considered good in normal society - but there essential in forex trading.

Forex success is available to those traders who understand the following:

Robust Simple Method + Applied with Discipline = Forex Success

Of course if you don’t have the discipline to apply a method with discipline, you really have no method in the first place.

1. Consult an Expert

The first thing to understand is that discipline comes from confidence in what you are doing. If you don’t understand how and why a forex trading system works you will ever have discipline - PERIOD.

To many traders follow gurus or mentors and expect their forex trading system to lead them to success - yet most of the systems sold are junk or the logic is simply not understandable and the traders lacks the discipline to follow it …