How do you feel about the market overall? Do you feel that you have your Psychology under control? If not, that is okay. These are both great questions and should be asked by all traders, in this series called Mastering Psychology in Trading, I take a inside look into how a trader can form all sorts of bad trading habits over time and how as a trader one can conquer it as well.
Habits such as cutting losses early or taking profits too early or not allowing trend based trades to run to there full ability. We focus on how they are formed over time for traders, due to some common normal non trading habit reactions and how a trader associates negative normal habits to trading. Like these associations, we also delve into how to get in control once again if you have one of these habits and how to make small changes that can make you a much better trader if so. Changes such as how you can deal better with losses on a personal level, how you can deal better with how you assess risk and how some traders can get caught in what I refer to as a bad trading cycle. A bad trading cycle where a trader is always fighting against what they know works and keeps falling in and out of bad habits formed from the past.
Above Video – In this series above let me reveal to you with some simple methods of acknowledgement of how a trader can finally over time break free from certain bad trading habits.. Those same bad types of habits that may have been costing a trader without them even knowing it.
Why Is Mastering Psychology So Important in Trading?
This is a great question.. In trading there are two core principles that make up a proficient skilled trader overall, one is that they have a good trading strategy based on high probability trading and the second one is that they stick to the process of that good strategy with good money management, discipline and the right Psychology. While the strategy alone is the key driver to great trading, it is handling yourself and your emotions in all market conditions in that market that sets one trader apart from another.
By getting trained and making a few simple changes on how you see the market overall, anyone can change those habits and become a better trader.