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
-=-=-==-=-=-=-==-=-=-=-=
-=-=-=-=-=-=-=-
Over the past few months, several investment professionals have brought... Read More
The Law of Chaos is the theory of random unpredictable... Read More
Every day in any financial publication you will find the... Read More
TOO OFTEN, INVESTORS SIMPLY CHOOSE TO follow the crowd. This... Read More
Everything you invest in has risk so you want to... Read More
You read and hear a lot about hedge funds. Unfortunately,... Read More
Are you paying any attention to your retirement savings? Do... Read More
This is a guide to the different types of mutual... Read More
If you are serious about making and keeping money by... Read More
Quick, look out the window. It's raining. No, the sun's... Read More
Did you know you can make money (and a lot... Read More
Are you attracted to the idea of being in control... Read More
Many people would like to diversify their portfolios to expand... Read More
Ever turn down a street, get half way and suddenly... Read More
If you've ever flipped on the television to CNN Financial... Read More
Well, not really. What I mean is I don't mind... Read More
Mutual funds are doing more and more to discourage investors... Read More
A Guide to Using Stop Loss Orders Stop losses are... Read More
If you don't know where you are going any road... Read More
It is finally catching up with them. The brokerage companies... Read More
"Buy and hold" is one of the most heralded investment... Read More
The Dow Theorycharles h. dowcharles h.... Read More
Let me start by saying that...Most online brokers do not... Read More
Everyone who invests in the stock market wants to be... Read More
(1) CHK stock price $16.74, NAV $32.5CHK is my favorite... Read More
tidy up service Arlington Heights ..If you are serious about making and keeping money by... Read More
When you stand on the ocean shore and watch the... Read More
We keep hearing about this bear market and that the... Read More
Right now there doesn't seem to be any "gold fever".... Read More
Have you seen all those big full page ads for... Read More
I know there are a lot of you out there... Read More
Ever jumped out of an airplane? It's OK if you... Read More
For weeks, no, months we have been bombarded with nothing... Read More
The debate rages all over Eastern and Central Europe, in... Read More
I mean it when I say that. While plastic silverware... Read More
One of the great truisms of Wall Street is "Don't... Read More
04/28/2005NASDAQ dropped -12.5% year to date in 2005. S&P500 index... Read More
As an investor you will want to check out any... Read More
When you invest in the stock market for ever-increasing cash... Read More
TOO OFTEN, INVESTORS SIMPLY CHOOSE TO follow the crowd. This... Read More
Why? Because I am going to shatter your conventional wisdom... Read More
What account size do I need?How much money can I... Read More
The World Bank claims that some two billion of the... Read More
Every day on CNBC-TV they show a 200-day moving average... Read More
Every publicly traded company is required by the SEC(Securities and... Read More
When is a dividend not a dividend?The latest thing "conservative"... Read More
What is leverage?Here is a definition of leverage from an... Read More
There is so much involved in developing peak performance, that... Read More
The stock market is very unstable at this time going... Read More
Are you paying any attention to your retirement savings? Do... Read More
Stocks & Mutual Fund |