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
-=-=-==-=-=-=-==-=-=-=-=
-=-=-=-=-=-=-=-
"If you don't know where you are going, any road... Read More
With all the bad news that has been dumped upon... Read More
Every day in any financial publication you will find the... Read More
It looks like the market is ready to start up... Read More
Minority Report the movie may not be far off if... Read More
Very few people, even professionals, have heard of the Dalbar... Read More
The World Bank claims that some two billion of the... Read More
As the man said, "I've got some good news and... Read More
With an insecure job market, overworked employees, insufficient retirement savings... Read More
You have heard about a particular mutual fund from a... Read More
Is really not as important as to how you invest... Read More
"There is nothing more frightful than ignorance in action!" Johann... Read More
Every year I go to the Money Show in Orlando,... Read More
What are you thinking when it comes to your no... Read More
All stock trading and investing methods must deal with the... Read More
If you are going to be a winner in the... Read More
Robert Rodriguez likes to buy stocks at their lows. When... Read More
Since I can remember, and that's a long time ago,... Read More
Exchange Traded Funds (ETFs) are growing. Investors are choosing low... Read More
There has been great condemnation recently because China has been... Read More
Several times each month I am solicited by various market... Read More
Did you know you can make money (and a lot... Read More
With over 6,000 mutual funds available, it may be tempting... Read More
I would like to share with the reader an article... Read More
An investor can find and research the best stock on... Read More
efficient cleaning crew Highland Park ..The basis of diminishing return discussions surround such simple notions;... Read More
When you invest in the stock market for ever-increasing cash... Read More
When the stock market is going up and all your... Read More
I am sure that if you have a brokerage account... Read More
Index Fund Trading can be one of the most profitable...or... Read More
Have you been listening to the talking heads on CNBC-TV?... Read More
Every day on CNBC-TV they show a 200-day moving average... Read More
A Guide to Using Stop Loss Orders Stop losses are... Read More
The Macedonian Stock Exchange (MSE) is not operating successfully. True,... Read More
Ever notice how behavior in one area of life can... Read More
Investors who exclusively use broadly diversified, no load mutual funds... Read More
Checked your 401K lately? Going back to about a year... Read More
Financial markets provide their participants with the most favorable conditions... Read More
Every day I see in the financial section of newspapers... Read More
Using Swing Trading Strategies and Technical Analysis when Trading Stocks... Read More
Sometimes the best way of lowering exposure to risk is... Read More
An investor can find and research the best stock on... Read More
'Sector funds are too risky.' 'I doubled my money with... Read More
Mutual fund investing is a lot like Thai cooking. Everyone... Read More
Exchange Traded Funds (ETFs) are growing. Investors are choosing low... Read More
The stock market has been in an up trend for... Read More
When you become interested in a stock or mutual fund... Read More
The thinking process of the brain relating to the... Read More
Now where have I heard that before? I know. It... Read More
During the day I watch CNBC-TV, the stock market channel.... Read More
Stocks & Mutual Fund |