Hello steemian friends... You will see the theme throughout this post. It is the most important concept you can learn if you want to become a successful trader. If you can master this skill, you can be very successful in this business. But without those skills, you will fail. everything is so easy. If you can learn to act on your main interests, you will make a lot of money from trading. If you can not learn to act on your main interests, you will lose a lot of money from trading.
Psychology Trading part #2
When you see, the market (in the future) works in a way that is very different from almost anything in life. There is more freedom in this business than almost any business in the world. You can do anything you want, whenever you want it, almost anything you can do when the market is open. The thing that will get in your way is if you run out of money. In addition, you have every freedom to do what you want to do in the market.
Trading is very different from everything else we do in life. In everyday life, you can have control (at least) by doing things that affect the environment. For example, if you want to listen to music, you have to turn on the radio. When you press the power button, music will be heard from the radio. If you do not press it, the radio will not turn on.
Another example is when you turn on your car. If you enter the key and play it, the car will turn on because you did something that caused the change. If you do not enter the key, the car will not turn on. You must change the environment (by turning the key) if you want to start the car. Every day we do things that cause change in the environment. We put the card in the ATM to get the money. We hit the button on the coffee maker to make coffee in the morning. These are the things we can do consciously.
But here's the difference:
In trading, you can not control what the market will do. No matter how much you want the market to move in a certain direction, there's nothing you can do to make the market move in that direction. No work you do that can make the market move towards you. We can not press a key, turn the key, there is nothing we can do to make the market do what we want. There is no!
So if we can not control the market and what will be done, what we can do to achieve success is to control ourselves. It's easier said than done. But that's the reality of successful trading. Again, you can not control what the market will do, so you should be able to control what you are going to do.
I have met with hundreds of traders and unfortunately, most of them experience failure in trading. Most of them never learn about the skills they must have to be successful. Most of them focus on finding the perfect technical or system method, and few realize that it is just a small element of the whole system.
A person who has a good self-discipline and a bad trading method will beat someone who has poor self-discipline and the best trading methods of the time ...
The ability to act in the best interest is far more important than finding the perfect trading technique. As I often say, Someone who has a good self-discipline and bad trading methods will beat someone who has poor self-discipline and the best trading methods of the day. It will always happen. Often, I talk to people who earn big profits in some trades. For example, I remember the time when someone called me and told me that he had earned 800 points in three S & P trades (worth about USD 6000). But even with this huge profit, traders still lose money in trading. When I asked him why he did not use stop orders to lock in his profits, he said he was still looking for bigger profits. I knew then that this man had no major interest in his mind. Of course, we all want big profits.
But one thing we must remember is that we can not control what the psar will do, so we must be prepared for all possibilities. So if someone gets 800 points in the S & P trade (not an easy one) he should set his main interest in mind and not let his profits go, even if it means losing out on a big winning chance.
This article will be divided into 3 sections. The first part is titled The Skills You Need, where there are abilities I believe you need to achieve success in a trading environment. It includes such things as setting and achieving goals, being an active winner and loser, perfect trade execution.
The second part is entitled Skills You Do not Need. Includes a chapter on asking, hoping, and praying. Also included is a chapter titled Trading Revenge .. Another chapter titled Emotions: Fear, Anger, and Greed ... This section will help you figure out the things you should avoid to be successful in your trade .
The third and final sections consist of ideas that were originally incorporated years ago by Dr. The famous Maxmell Maltz, who invented the term Psycho-Cybernetics. The chapters in this section will give you an idea of how Psycho-Cybernetics works and how you can use them to improve your trading results. This section contains the most important points of this book: training steps to train you on how to act on your key interests and how to overcome the emotional side of trading.