With all the marketing going on in regards to the business of trading, one important variable that gets left behind is trading psychology.
It’s not the sexiest of topics but is one that is vital to a complete package trader.
Not dealing with the issues that we all face as traders such as losing streaks, stress and the transition from demo to live trading, will make it difficult to gain much traction on the success road.
You may be just starting out and are still looking for a trading system you can rely on. You want to start off on the right foot so you can take a look at Counter Punch Trader and see if that system suits you.
Even long time traders still suffer from psychological issues related to trading. While certainly not an exhaustive list of issues we face, here are 3 common problems and suggestions on how to deal with them.
1. The Psychology Of Losing Streaks and How To Overcome Them
“If you do engage in some of the ineffective behaviors mentioned above, it is likely that you will end up trapping yourself in a vicious cycle.
This is because risky trading behaviors such as over trading or revenge trading are likely to make you lose again and, therefore, evoke the same unpleasant emotions and unhelpful thoughts that led you to it.” Click here to read the entire post.
2. 3 Psychological Differences between Demo and Live Trading
“Once you were able to demonstrate consistent profitability and build up your confidence in taking trades, you decided that it was time for you to get your feet wet and open a live trading account. Since you were already hitting consecutive wins on demo, making huge profits with real money at risk shouldn’t be that difficult, right?” Finish reading the article here…….
3. Dale Carnegie recommended a simple psychological trick to reduce your anxiety
“The general idea behind the stop-loss strategy is to determine how much things are worth to you, and how much psychological turmoil you’re willing to endure for their sake.” Continue reading here….
Thanks for reading and we hope you picked up a few ideas. You are invited to also pick up this free indicator blueprint to ensure you are using indicators the right way.