Trading Psychology - A short thread

By Dan Holy

'Statistically, you are losing.'

We are told that 75%+ of all traders are losing traders, yet most will think of themselves as 'better' than these people.

Begin by assuming that the 75%+ are all:

-intelligent
-well grounded
-have access to same info we have
-good students..

So, what makes them losing traders?

Their state of mind makes them losing traders.

They haven't learned to deal with fear.

Think on this; who is more likely to stop trading:

-A) person up $1k?
-B) person down $1k?

Answer: A

People are fearful when they should be hopeful and hopeful when they should be fearful.

You know the feeling, as your position allocation begins to grow with account size you get that little dash of nerves.

This is normal but entirely necessary.

"When you're a good trader, everything you do 'hurts'" - Charlie D

We, as traders, must numb fear and cultivate faith.

It is imperative that we rid ourselves of the emotion that 75%+ feel when trading.

"Practice does not make perfect, it makes permanent"

Practice for optimal, not average, performance.

In discovering trading, you have found beauty.

Beauty visible only through faith, not fear.