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
-=-=-==-=-=-=-==-=-=-=-=
-=-=-=-=-=-=-=-
Every day I hear from the "experts" on CNBC-TV and... Read More
The World Bank claims that some two billion of the... Read More
This is an extract of an article which was first... Read More
Dollar cost averaging is one of the most popular ideas... Read More
I receive emails from Morningstar. This company provides statistics and... Read More
Someday you may want to retire and continue to live... Read More
I feel that an investment strategy in the stock market... Read More
Picking a beaten-down stock requires a different kind of selection... Read More
Caught in a whirlpool and being sucked under. No life... Read More
The gleam and bright lights of Wall Street lure in... Read More
When most analysts, financial planners, fund specialists and investors try... Read More
Reduce your investing and stock market risks by:Setting your sights... Read More
04/28/2005NASDAQ dropped -12.5% year to date in 2005. S&P500 index... Read More
There are formulas for just about everything, but it has... Read More
To become a successful trader you must have some kind... Read More
It looks like we have now entered a new bull... Read More
TOO OFTEN, INVESTORS SIMPLY CHOOSE TO follow the crowd. This... Read More
Analyzing growth stocks is an important focus for any investor.... Read More
Are you paying any attention to your retirement savings? Do... Read More
Let me start by saying that...Most online brokers do not... Read More
The demand for world oil is increasing while world reserves... Read More
According to Investopedia Inc. the penny stock market has seen... Read More
On November 17 I bought 7 different mutual funds and... Read More
Every day I see in the financial section of newspapers... Read More
(1) Stock Market is Tough Place to Make Any Money... Read More
premium house cleaning Glenview ..You should ignore analysts on TV, the radio, the newspaper... Read More
There is so much involved in developing peak performance, that... Read More
Do you have a nest egg? You know, a place... Read More
When you invest in the stock market for ever-increasing cash... Read More
Fundamental analysis.Fundamentals analysis says the best way to predict the... Read More
Because you don't feel too sure about which stock or... Read More
In 1960 an engineer working for a watch company in... Read More
Stock investment advice is easy to find. Do you get... Read More
Everyone who follows the financial news has heard of mutual... Read More
I have watched my cat play with a bag of... Read More
I go to the Money Show every year to visit... Read More
Let's assume that you want to make some serious money... Read More
It is commonly reported that the stock market averages about... Read More
With an insecure job market, overworked employees, insufficient retirement savings... Read More
Being wrong is OK, but let's not carry it to... Read More
Is really not as important as to how you invest... Read More
Every publicly traded company is required by the SEC(Securities and... Read More
This is the continuing story of our two imaginary traders,... Read More
When it comes to stock market trading it PAYS to... Read More
This is the continuing story of our two imaginary traders,... Read More
When we go to the circus we see a trapeze... Read More
What does it take to be a stock trader? It... Read More
Wouldn't it be nice if you were only in the... Read More
With the stock market stubbornly refusing to settle down and... Read More
Wall Street has been preaching for years and years to... Read More
Stocks & Mutual Fund |