The thinking process of the brain relating to the psychology of trading involves:
-- Beliefs
-- Feelings
-- Values
-- Dispositions and
-- Faith
The positive or negative energy brings power to a person's actions, which ultimately determines whether a person is a winner or a loser. You can change for the better or for the worst. The old saying goes: For as a man thinks in his heart so he is.
-- Trading is the most difficult money making skill to master, because the market represents the aspects of people and life.
It is necessary to scratch the surface and explain what psychology means and how it relates to trading. Without doing so, you will not understand why this element is important to your trading plan.
The psychology aspects of people are separated into two categories:
1. Believers (the first category) who support the belief that something in the realms of other dimensions in the universe exist and
2. Non-believers (the second category) who are convinced that reality is the only dimension of life.
It is (the first category) that usually uses both sides of the brain to think and has access to a third component of the brain (faith) that is dead when the person is born. (The second category) only uses a small portion of the brain's power. While (the second category) may or may not use both side of the brain to function, the third part of the brain (faith) is completely dead and non-active.
See, the psychology of the brain is separated into three separate parts:
1. Faith
2. The thinking factor and
3. The emotional part.
If the thought, (focusing on the power of positive thinking), division of the brain controls the emotions, the individual maintains and develops discipline. If the emotions run the thinking part of the brain, the human being lives in a pure state of extreme confusion and disorder.
This is why the answer to success is understanding how the correct forms of discipline work - without it you will lose your shirt in the market.
Discipline in the following three areas of trading will ultimately determine your trading success.
* Training --- The successful trader never rests on past successes, or believes that his trading ability has peaked. He is always learning and practicing his decision-making skills, honing them until they become second nature. Then he can react faster than a speeding bullet, but with the benefit of superior human judgment.
* Trading Rules --- The successful trader develops set of trading rules - a plan - that he follows faithfully. This guides his decision-making at all times. If a trader's plan dictates that it is time to exit a stock, the trader will exit that trade and not wait a minute longer.
* Self-Control --- Successful traders display an extraordinary amount of self-control. Keeping emotions constantly in check, the disciplined trader is immune to the highs and lows that attend large market swings - whether panic, in a downturn, or of euphoria. I will show you how to learn the secrets of discipline.
Can You Learn Discipline?
The big question here is whether you can develop the discipline you do not have naturally. I believe the answer is "yes, you can," but you must have the necessary commitment to do so.
Ultimately, undisciplined behavior is going to be punished by the market.
Private traders who persevere and master self discipline, have external stimuli that will help the process. However, the market does not help as much as it might, because of the principle of random reinforcement. It is the market's tendency to reward bad behavior from time to time.
This crucial fact is one of the reasons why it takes so long to learn how to trade. You need to realize this: there is no point in having a system if you are not going to follow it. Follow and develop a routine of self-discipline and you will be successful in your trading ventures.
-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-
David Jenyns is recognized as the leading expert when it
comes to designing profitable trading systems.
His most recent course Ultimate Trading Systems is a step-
by-step trading roadmap to designing profitable trading
systems. Learn how *you* can become one of his students.
Click Here ==> http://www.ultimate-trading-systems.com
Receive David's free trading tips by sending a blank email to:
==> http://www.ultimate-trading-systems.com
-=-=-==-=-=-=-==-=-=-=-=
-=-=-=-=-=-=-=-
Cat or dog? Maybe Zebra. Shucks, I don't know, but... Read More
That sounds like good advice doesn't it? Don't lose all... Read More
Regardless of the fact that the world's stock markets have... Read More
I use the P/E ratio as a secondary indicator for... Read More
A common problem I often see when working with living... Read More
Economists know more about how the fragments of society work... Read More
Caught in a whirlpool and being sucked under. No life... Read More
Even if you don't own any of their stock or... Read More
Being wrong is OK, but let's not carry it to... Read More
There is so much involved in developing peak performance, that... Read More
Today we are inundated with tons of information about the... Read More
Are hedge funds a suitable investment for you? Hedge funds... Read More
Recently I was invited to appear on a live CNNfn... Read More
I often play a little game with myself when I... Read More
Options trading can increase the profits you make when trading... Read More
Right now there doesn't seem to be any "gold fever".... Read More
What does it take to be a stock trader? It... Read More
Mutual funds were created with the idea that one person... Read More
Minority Report the movie may not be far off if... Read More
Sidney felt sick as she looked at her latest OptionsXpress... Read More
Now where have I heard that before? I know. It... Read More
In 1960 an engineer working for a watch company in... Read More
Money management starts with protecting your capital, realizing profits and... Read More
04/28/2005NASDAQ dropped -12.5% year to date in 2005. S&P500 index... Read More
Just about everything you have been told about Social Security... Read More
emergency cleaning services Morton Grove ..Over the past few months, several investment professionals have brought... Read More
One of the main reasons many of us get into... Read More
Stocks breakout from properly formed bases everyday but many investors... Read More
Having lived aboard a sailboat for 2 years I was... Read More
As a novice trader, you'll often feel the need to... Read More
Reduce your investing and stock market risks by:Setting your sights... Read More
How often have you come across an advertisement or e-mail... Read More
Right now there doesn't seem to be any "gold fever".... Read More
The recent criminal fiasco in the mutual fund industry is... Read More
I was recently interviewed for a press release through a... Read More
How many times have you said to yourself, "I'd like... Read More
Reach in your pocket and take out that big roll... Read More
An insane person cannot evaluate an insane evaluation system.As you... Read More
As an investor you will want to check out any... Read More
If you were to find that you had some severe... Read More
The trading method you employ to approach the stock market... Read More
IT'S REMINISCENT OF THE OLD children's tale about an old... Read More
We need a rabbit!This was a pretty horrible week for... Read More
Let's discuss commodities; with the latest Enron situation, it is... Read More
The greatest stock market myth is the idea that investing... Read More
Ever jumped out of an airplane? It's OK if you... Read More
If you haven't heard of the technical indicator with the... Read More
1. Do not spread your money too thin.My friend has... Read More
An investor can find and research the best stock on... Read More
We learnt the following the hard way! If any of... Read More
Stocks & Mutual Fund |