Candlestick Trading Blog
October 22, 2009
Psychology of Trading
| The psychology of trading is a concept that many investors don’t necessarily know about. Unfortunately, as a result, many traders go through a lot of money and quickly that they otherwise would not have lost to the markets. Instead of focusing only on the technical aspects of trading such as technical indicators and trading strategies, investors must learn about psychology of trading and how it greatly determines their level of success. While knowledge of trading and the markets is absolutely necessary, it is simply not enough. There are a lot of concepts associated with the psychology of investing that can not only greatly improve trading but that can also keep traders from developing bad trading behavior. Additionally, traders learn that they need to focus on their actual trading and less on the possible results. Instead of worrying about whether or not the next trade will be profitable traders must focus on the task at hand. Trading anxiety occurs when traders worry about what the result of their trade will be. This anxiety can quickly cause a trader to make poor trading decisions. Too often these trades are based on greed or fear, rather than on technical indicators and strategy. Also, when learning about trading psychology and trading behavior, the stock trader learns about the importance of having confidence in their trades. The focus is on meeting goals and measuring one’s progress on accomplishing those goals in order to build confidence. Keeping a trading journal is one way that many stock traders will accomplish this. Through documenting each trade and the progress made, this allows the trader to go back and to see what he or she has accomplished. It is also allows the trader to go back and see mistakes made. The truly successful trader will take those mistakes and will channel them into something positive. He or she will see that mistake as a learning opportunity and as a means for self improvement in one’s trading. We are pleased to have Adrienne Toghraie presenting a free webinar on Thursday, October 29th, 2009. Topic; 'Evolution of a Master Trader' and what it takes to get there. Ms Toghraie is an internationally recognized authority in the field of human development. She is the noted Author of "The Winning Edge 2" and "Traders' Secrets". Information to join this open session, (or to listen to the archived recording after the 29th). Online Stock Market Reviews presented live via the internet by Stephen Bigalow |
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