The current market conditions can undoubtedly play with your emotions. After a long bull run, it was easy just to sit back and let your trades run and book profits, but that's all changed recently. We are now in a market that is making significant violent swings from day to day, and that can cause a bit of trepidation and doubt, but of all the "tools" available to the trader, none is more important than his or her mind!
A lack of mental discipline can lead to significant losses in the marketplace and your portfolio. Why else would traders with years of experience and reliable systems fail to be consistent winners?
If you show an 8-year-old child a chart and they will tell you if a market is going up or down by simple observation. 80% or 90% of all traders end up as losers. The market doesn't beat you; you beat yourself! You are your own worst enemy! Continue reading "Do You Have Control Of Your Emotions?"→
After the trader has learned the mechanics of trading, we then enter into the world of Greed & Fear.
When you have your trading system in place, and know all about technical analysis, money management, probability, risk to reward and all the other components needed to be a successful trader, we are then introduced to our two friends Mr Greed and Mr Fear.