What separates good traders from bad traders?

There are many ways to invest online. While I can give you a mile-long list, these are the most common forms of successful investments. Some of the following terms on how to invest are:

1. Options trading

2. Future negotiation

3. Currency trading

4. Stock trading

5. Future negotiation

6. Currency trading (gold) currency trading

I want to start this online investment review with a story … On a beautiful late spring afternoon, twenty-five years ago, two young men graduated from the same university. These men were very similar. Both, better than average students, were personable and full of lofty dreams for the future.

For the sake of my example, I will steer both college graduates away from online trading using a day trading platform. Through a giveaway, you both start with the same online investment investment risk capital, the same daily trading platform, and the same trading system with precise entry and exit rules.

Surprisingly, there is a difference. After one month, the one day trader went bankrupt, while the other day trader made a 20% profit.

Have you ever wondered, like me, what makes this kind of difference in people’s trading? It is not always a native intelligence, talent or dedication. It’s not that one person wants success and the other doesn’t.

The difference lies in the psychology of the brain. Your psychological mindset is likely to play a bigger role in your online business career than your chosen technique or any other details associated with your daily practice.

Here are some good examples:

1. One person looks at a glass that is half empty, while the other personality looks at that same glass that is half full.

2. Someone may view problems and call them stress, while someone else sees them as challenges.

3. Another may see a ship in a storm as an adventurous roller coaster, while another human sees the same situation as a hurricane having a kill call.

I am not the only one to discover this …

In his book, “Negotiate your path to financial freedom“Renowned American psychologist Dr. Van Tharp discusses the role psychology plays in business success. He breaks business down into three ingredients.

On your pie chart:

– The system is 10%

– Success in money management is 30% and

– 60% belongs to the psychology of thought and emotion.

Tharp found that mind-shaped trader psychology has more to do with their success than anything else.

However, what exactly is the psychology of the mind?

In short, the psychology of the mind refers to your emotional thoughts and actions and responses to any given situation … In commerce, fear, greed, vanity, pride, hope, jealousy, denial, All of these can affect investment decisions. Although your goal in the market is to maximize your profits and minimize your risk, thought and emotion often make it easier said than done.

FOR EXAMPLE: Traders, who cannot control the psychological process of thought and emotion, make the wrong decision, such as the common mistake of amateurs to maintain a losing position in the belief that one day they will become a winner.

Loss aversion is a classic mistake. By nature, human beings value a loss. Therefore, you are in almost twice the pain of losing $ 1 as you do of gaining $ 1. Loss aversion forces most traders to hold a losing stock as it plummets. This cloudy judgment clearly contradicts the business adage: cut your losses and let your winnings run.

Emotional investors hold losing positions because they view losses on paper differently from realized losses. An investor also engages in other forms of irrational behavior.

The EXAMPLES are attributing success as natural and losses to bad luck.

This is just the tip of the iceberg. When it comes to the other devastating effects of trading, if you don’t have the psychology of your thoughts and emotions in proper perspective, the consequences can be devastating.

This is what opens up problems for new entrants, and then they lose money management very quickly in the markets. Most people wiped out their finances in their first year of operation. So as you can see, your thoughts and emotions play an important role in determining whether you fail or succeed, but did you know that thought and emotion form two different spheres related to business success?

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