A key feature to trading successfully is the area of the Psychology of Trading.
The technical analysis and fundamental approaches are key to determining initial trading decisions (when to buy, where to target to exit, at which level is the trade wrong, where to exit), whilst risk management allows for control of the trade once initiated, to maximise profits and limit losses, it is the area of Trading Psychology and the ability to preserve discipline and to contain and control emotions and feelings, that is paramount for successful trading.
In this section we educate the reader by exploring the various emotional and psychological aspects that can impair successful trading. Furthermore, we will attempt to provide solutions and strategies that can be employed to help in the control of these emotions and psychological deficiencies in order to make you a successful trader.
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In an ideal world, as traders we need to have an almost robotic mindset and become mechanical, unattached from the markets, dispassionate, and most importantly be able to make trading decisions without any emotions impacting decisions. However, there is one big problem with this – it is impossible! As humans we can’t NOT experience emotions, … Continued
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I bought a seat at the CBOT in 1980…..jumped into that jungle called the “pits” and traded 30 year bonds with the best the world had to offer. You not only had to find your “edge” and trade well, but you had to dodge pencil points that could stab you in any part of your … Continued
Table of contents 1. Know your trading goals 2. Based on your goals – draw up a battle-plan and stick to it 3. Choosing a broker – perhaps THE most important hurdle a beginner needs to clear 4. Do not be overly ambitious when picking your account type 5. Make sure your broker offers a … Continued