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Trading psychology

 

Traders mentality or Trading discipline.computer_brain_ Developing a healthy mental attitude towards trading is an integral part in being a successful trader. In order to Shield yourself from sudden misfortunes  a strong mental attitude is your primary defence.

In today’s world, with the technology we have available- its no wonder  a record number of  people are wanting to make money trading.  The place where I see many people find difficulty or stub their toe is when it comes to adopting the correct mental attitude  needed for trading.

Many people underestimate the importance of having the proper mental approach to trading- its not as simple as just knowing ”how to do it” you need realise that in order to be mentally prepared for 29956_nota_money_machinetrading you have to be ready for the  ”mind game” aspects of trading.

The proper mind set that I’m speaking of here is the result of self-discipline and habit.  Without exception, all consistently profitable traders have a winning attitude.   Some develop it the hard way, and for others it comes easily.   No one  started trading, and went on to have success, without having the right attitude.

Successful traders take full responsibility for their own actions and when it comes to trading they’re no different.positive-attitude  It ‘s much easier and more convenient to blame others for our mistakes so there are a number of people not wanting to own up, and take responsibility for what they do. Traders who are successful,  realize that their success or failure is all their own.  While it may be convenient to blame the brokerage for a bad execution, or blame the signal service for a string of bad trades, the ultimate responsibility for your actions falls directly on your shoulders, and you know it.  You can learn a lot from an experienced trader, but your results are the result of your actions.

Stay emotionally neutral- Keep Your Emotions Stable   

 Save your emotions for the things that really matter in life like family and friends, not trading. Successful traders don’t get too high when they have a winning day, and they don’t get too low when they have a losing day.productive  Taking a loss is as much a part of trading as is taking a gain.  The difference is in how you emotionally deal with the losses and the gains.  The market fluctuates all the time, but successful traders don’t come home and kick the dog after a bad day. Successful traders don’t let the stock market put them on an emotional roller coaster ride.  Staying emotionally neutral is the key to long term trading success.

 ”Newbies” or  New traders often experience a “burn out“, which is more a result of emotional ups and downs than anything else.  Don’t buy in to the hype that is constantly coming out of Wall Street.  Don’t get frightened when the market falls or phone home when it roars higher.  Just trade it. 

MAINTAIN A CONFIDENT MINDSET

confidence

Most Aspiring day traders do not pay enough attention to their own mental state. They pay far too much attention to what just happened in the market and are not mentally prepared.

Successful day traders actively manage their mental attitude in order to maintain confidence in the face of uncertainty, they practice  discipline in the middle of randomness. Maintaining a confident mental attitude is a skill that can be learned. Top athletes practice it. Top traders practice it. You can, and should practice developing and maintaining a confident mindset!

4 Comments

  1. Very helpful advice in this particular article! Looking at this post reminds me of my previous roommate! He continually
    kept preaching about this. I most certainly will send
    this article to him. Pretty sure he’ll have a very good read.
    Many thanks for sharing!
    I read your new stuff regularly. Your writing style is awesome, keep it
    up!

    • Dean

      November 13, 2014 at 1:50 am

      Hey Kevin! thanks for following man. Sounds like your roommate knows a thing or two;-p I really enjoy writing and I’m glad you appreciate it, thanks for the comment.

    • Great Post! Certainly touches on some very important points in regards to trading psychology. Thanks for sharing!

      • Thank-you Arvind. I think its very important to maintain the right mindset while trading.. after practising it for a while it just becomes second nature;)
        thanks for the comment
        All the best
        Dean

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