Don't let your trading mind-set hold you back
Trading psychology is critical to your success in the markets. This is a much neglected area that most traders push to one side to focus on trading technique or the news. This is a big mistake. Read on to find why you shouldn't let your trading mind-set holds you back…
Who really wants to be bothered discovering often uncomfortable facets of their personality and making necessary adjustments to it? Studying price charts and playing with technical indicators is far more fun!
As is reading all the opinions of the famous experts, of course, John Burford explains in MoneyWeek
. But the opinion of others heavily influences you, you’re on a road to nowhere.
In reality, most of us only read opinions that align with our own view. This is what creates a herd.
The good traders spend little time reading the opinions of others (other than to judge market sentiment).
Many traders are on a quest to uncover the perfect trading method. “If only I can find that ideal system or indicator, I will be rich!” is their belief.
But here’s the bad news for such traders – there is no such perfect system out there.
It is often said by experienced traders that if they had the choice between having a great system and poor discipline to apply it, and a mediocre system and great discipline, they would choose the latter every time.
Discipline matters above all else
to enter a trade only when your methods tell you, and the discipline to limit your potential maximum loss is the mark of a good trader.
Successful traders come in many guises. From high-strung gun-slingers all the way through to steady Eddies. Each one has figured out the style that suits them best. And every one has strict money-management rules that they apply day in and day out in every trade.
Any lack of success is largely a result of not knowing yourself – not truly understanding your strengths and especially weaknesses.
Successful traders rarely run with the herd – and especially not when the herd is gargantuan!
So there you have it, why you shouldn’t let your trading mind-set holds you back.