Dec 10 2007
What Percentage of Trading is Mental?
It's maddening really. Why can't I be a perfect trader? Why do I need to make mistakes, nevermind actually lose trades. The mental dialogue I have between good and evil in my mind can be exhausting. I've never meant for this to be a blog of trading do's and dont's as much as it is a reflection of trading and what I'm inundated with on a daily basis.
Besides many traders not truly understanding what leverage and margin (the question of what is the true value of a pip can also stump many), many overlook trading psychology ... or at least nod assuringly when they hear of how things "ought to be." It all sounds good, but when the rubber meets the road, many throw everything they continually nod positively at and make the same mistakes over and over.
If you're in the rare minority who has reached the peak of discipline, I congratulate you.
For others constant adjustment and reassurance is necessary. Until Feb. 9, 2007, the Innerworth Mind Over Markets Newsletter was a twice weekly newsletter that delivered insight into trading psychology that was tremendous. Shortly thereafter Michael Shopshire who was a chief contributer to Innerworth's newsletter started a Monday-Wednesday-Friday newsletter for the MarketBlog Central section of www.marketwise.com.
He posted the newest entry today, and you can visit it, or be put on the email list, or if you're technically savvy subscribe to the RSS feed. It's great stuff, and I'm sure you'll all enjoy it.
Besides many traders not truly understanding what leverage and margin (the question of what is the true value of a pip can also stump many), many overlook trading psychology ... or at least nod assuringly when they hear of how things "ought to be." It all sounds good, but when the rubber meets the road, many throw everything they continually nod positively at and make the same mistakes over and over.
If you're in the rare minority who has reached the peak of discipline, I congratulate you.
For others constant adjustment and reassurance is necessary. Until Feb. 9, 2007, the Innerworth Mind Over Markets Newsletter was a twice weekly newsletter that delivered insight into trading psychology that was tremendous. Shortly thereafter Michael Shopshire who was a chief contributer to Innerworth's newsletter started a Monday-Wednesday-Friday newsletter for the MarketBlog Central section of www.marketwise.com.
He posted the newest entry today, and you can visit it, or be put on the email list, or if you're technically savvy subscribe to the RSS feed. It's great stuff, and I'm sure you'll all enjoy it.
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Many thanks for reccommending this great website.
Excellent analysis of all aspects of trading psychology in so many articles on display.
Great for all of us who need to remind ourselves on daily basis how important is to be highly disciplined in trading.
Plan your trade and trade your plan is a golden rule.
That applied on both fronts, how to enter and how and when to exit.
It took me months to learn how to exit my bad trades early.
So the golden rule is now written on a large banner placed above my computer screen!
A good reminder for sure!
Excellent analysis of all aspects of trading psychology in so many articles on display.
Great for all of us who need to remind ourselves on daily basis how important is to be highly disciplined in trading.
Plan your trade and trade your plan is a golden rule.
That applied on both fronts, how to enter and how and when to exit.
It took me months to learn how to exit my bad trades early.
So the golden rule is now written on a large banner placed above my computer screen!
A good reminder for sure!
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