Trading Psychology Bits

[Robert Githu]

#1.A big mistake that beginners make when first learning to trade, is to assume that developing technical or fundamental analysis skills alone will allow them to become successful. In fact, learning to control emotions is the most important skill that allow a trader to become successful, because emotions have the biggest impact on your results.

Dr. Van Tharp is known for breaking down the trading process into three categories that affect traders. He categorises them by importance as follows:

• Trading strategy (10%)
• Money management (30%)
• Psychology (60%)

 

[Robert Githu]

#1.A big mistake that beginners make when first learning to trade, is to assume that developing technical or fundamental analysis skills alone will allow them to become successful. In fact, learning to control emotions is the most important skill that allow a trader to become successful, because emotions have the biggest impact on your results.

Dr. Van Tharp is known for breaking down the trading process into three categories that affect traders. He categorises them by importance as follows:

• Trading strategy (10%)
• Money management (30%)
• Psychology (60%)

#2. Role of psychology in trading.
Successful trading is not down to any single trade, but a number of trades using a strategy. This means that a trader must be disciplined enough to stick to their strategy, even throughout a losing streak. However, human beings often do not behave in a logical way and there are many times that emotions influence us and we act differently to normal. A trading strategy's success is determined by a number of trades. A successful trader must stick to the rules of their strategy and not allow emotions to get in the way.

 

[Minwer]

#2. Role of psychology in trading.
Successful trading is not down to any single trade, but a number of trades using a strategy. This means that a trader must be disciplined enough to stick to their strategy, even throughout a losing streak. However, human beings often do not behave in a logical way and there are many times that emotions influence us and we act differently to normal. A trading strategy's success is determined by a number of trades. A successful trader must stick to the rules of their strategy and not allow emotions to get in the way.

Yes, you have been creative, but the trader must always look at winning deals and he must also know the movement of the husband and stay away from fast spouses so that he does not lose at the beginning with success

 

[JeromeSta001]

I find this thread extremely educative and informative. People downplay the role of trading psychology a lot and it's the most important if you want to be successful in the long run and not just a mere gambler with some hawkish financial knowledge.