TRADING IS A BUSINESS

psychology is the key to success in trading. are you match tough?

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TRADING IS A BUSINESS

Postby TheRumpledOne » Tue Nov 27, 2007 9:57 pm

In my inbox:

Hi AVERY,

============
Here is the next in a series of articles I'll be sending you about
the mental/emotional side of trading. The articles, together,
will comprise the major part of a new book I'm writing. Enjoy!

(You may want to print this particular article out so you have
it in hard-copy)
============


TRADING IS A BUSINESS


Successful traders consider trading as a business.

Trading takes a completely different mind-set than being an
investor.

Investors look for long term capital gains by investing for
the long term. Investor concerns are strong fundamentals of
a company and its sector.

Investors enter into a long term relationship with a company.
Almost by definition, investors are long on their investments;
that is looking for an increase in value.

Traders, on the other hand, have a more "one night stand"
relationship" with their investments.

It's not the fact that traders are less discriminating; they are
only interested in one thing- making money on short term
price movements.

The more volatile the better.

No meaningful relationship or respect; it's all about making
money.

But ironically, being a trader usually requires more rigorous
planning dedicated focus than does a long term investor.

Another big distinction between the two is being an investor
is an avocation; being a trader is a vocation.

Being a trader begins with a rigorous trading plan. It provides
the disciplined foundation for "going the distance in the
trading ring".

It codifies how to lead a trader's life. It becomes a strict code
of action, analysis and introspection. It is, indeed, a way of
life centered on a disciplined mind making money out of
chaos.


More specifically, a good trading plan does the
following:

- Provides the ability to monitor performance, diagnose
problems and improve performance.

- Help provide a means of reducing stress and keeping
a positive attitude.

- Help to prevent psychological issues from undermining
success.

- If aggressively monitored and adhered to, a plan will
reduce the number of unsuccessful trades.

- A plan provides structure and procedure to help
promote disciplined trading and help keep the focus on the
system and not the trader.

- Permits the trader to manipulate the only controllable
factor: the trader.

- Helps to prevent emotions from distorting the
procedures that compose the system.

- A plan is a roadmap to help define and achieve
clearly defined goals.

- A consistent way of trading will allow more successful
trades.

- A successful plan-if implemented in a disciplined
fashion will help instill confidence and a winning attitude.


Before designing a trading plan, thought must be given to
the traders motivations for trading.


Questions such as the following must be answered
honestly:

- Is the trader trading for practical reasons or for
psychological needs?

- Is trading compatible with the trader's personality?

- What are the specific goals and objectives? Are they
realistic?

- Is there a better way for the trader to make a living
and meet the de-fined goals?

- Can the trader's ego take being wrong at least 40%
of the time and is the trader honest enough to accept the
fact that there are no excuses and that losing is a part of
learning?

- Can the trader be objective when doing trade analysis?

- Does the trader have the patience to struggle through
several years of marginal trading success before showing
signs of consistent success?


Being a professional trader demands continual training and
an attitude of humility.

The problem is that most traders only have self-criticism to
turn to and this begs the next question: Can a trader accept
the criticism and suggestions of others?

Many would-be traders turn to trading because only the
condition of the trading account creates accountability.

Successful traders seek out ways to be held accountable by
contracting a coach or training consultant. Many other
businesses understand the need for objective observation
of others outside the daily operations.

In closing, if you go into trading as an avocation be aware
that the probability of wining consistently is very much
correlated with time, effort and preparation that has gone
on before any real trading begins.

To be successful as a trader takes a very focused commitment
to a carefully designed plan.

If the thought of all the due diligence preparation gives the
reader a headache, it's probably best to have your fun by
going to Las Vegas or Gambling casinos-at least you'll get
some added benefits like free drinks or a floor show.


My best,

Norman Hallett, CEO
Subconscious Training Corporation
Makers of TradingMind Software
Tap Here NOW to be a DISCIPLINED Trader
954-757-8722




6606 NW 66th Avenue
Parkland, FL 33067
Last edited by TheRumpledOne on Tue Nov 27, 2007 9:59 pm, edited 1 time in total.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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Postby TheRumpledOne » Tue Nov 27, 2007 9:57 pm

In my inbox:

Hi AVERY,

============
Here is the next in a series of articles I'll be sending you about
the mental/emotional side of trading. The articles, together,
will comprise the major part of a new book I'm writing. Enjoy!

============


DESIGN FOR ISOLATION


Trading can be a solitary undertaking.

For many, that's a good thing.

Office politics, the commute, the chaotic office environment-
all gone. On the other hand, you work alone without the
fellowship of colleagues.

When you make a perfect trade, there's nobody to pat you
on the back and make you feel good. When you make a
mistake, there's nobody to talk with about what you might
have done differently or to ask advice on how they would
have approached a trade gone bad.

Of course, some people are more social than others and the
job and office environment is a large part of who they are.

But as a solitary trader, you make your work environment
and are on your own to motivate, manage and train yourself.

Create the work environment you want.

If it's control of your own time, make sure to design a
system and schedule that gives you the freedom you desire.

However, you must meet certain expectations first.

For example, if you want more free time, you must earn it
by meeting some specific goals. If you have a goal of
making 50 pips per week, take your time off when you hit
your goal.

Also, try to limit your trades to short term intraday trades.

Develop a trading system that allows you to set-up, enter
the trade and walk away (after setting sell and buy stops)
without hovering in front of your computer screen
watching each tick.

Find a way to tailor your work environment and meet
your specific needs and desires.

To motivate yourself, identify the things you like to do.

For instance, if you like to dine out in style, reward
yourself when you hit your monthly goal. If you hit your
yearly goals, take a vacation. Formalize your rewards.

On the other hand, when trading has not been going
well, stop trading and go thru a review process of your
system and past trades. Once you feel ready, get back
into your regular pattern.

Formalize the "time out" procedure for when things
aren't going as planned.

It's also a good idea to develop a way to program your
positive state of mind. Some traders use self-hypnosis
to help remove distractions and fears.

Others meditate or do rigorous exercise before the
trading day begins.

Maybe it's something as simple as saying a prayer or
having some quiet time before starting your day.

The point is that a trader needs to incorporate some
form of psychological preparation to help block out
the negative and keep positive and focused on the
mechanical business of implementing your trading
system.

Trading is a matter of identifying high probability trade
opportunities and executing effective strategies and
tactics.

Remember, emotions, fears and "gut feelings" are the
worst enemies a trader needs to confront.

Trading is an intellectual endeavor. Information and
how to interpret it is the nitty-gritty and there are
always new things to learn. There is a large network
of experienced traders who form a treasure chest of
ideas and information.

There are no laws which prohibit traders from working
together to help each other.

As a matter of fact, traders are doing what many of
today's top athletes are doing by turning to personal
coaches to help give them perspective, accountability
and new ideas.

Seminars, books and new systems offer a broad range
of learning opportunities and a trader needs to have a
plan for professional ongoing education.

Learn to open up to other traders and put your ego
behind you.

Listening to others can make you successful and you
can also help others become successful. If it's helpful,
learn it and pass it on.

Besides, good karma might very well be another factor
in becoming a successful trader.


My best,

Norman Hallett, CEO
Subconscious Training Corporation
Makers of TradingMind Software
Tap Here NOW to be a DISCIPLINED Trader
954-757-8722

6606 NW 66th Avenue
Parkland, FL 33067
Last edited by TheRumpledOne on Tue Nov 27, 2007 9:59 pm, edited 1 time in total.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



Please do NOT PM me with trading or coding questions, post them in a thread.

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Postby TheRumpledOne » Tue Nov 27, 2007 9:58 pm

Hi AVERY,

============
Here is the next in a series of articles I'll be sending you about
the mental/emotional side of trading. The articles, together,
will comprise the major part of a new book I'm writing. Enjoy!
============


THE CROSSOVER POINT


"I'm tired of this job; not enough money and I'm bored.

My life seems to be totally out of my control and I need to
make a change. I think I'll look into trading stocks or
currencies or commodities; it sounds like fun and I can
become a millionaire", you mutter secretly to yourself.

"OK", says a small voice in the back of your head.

Startled, you look around.

You've never heard this voice inside your head before.

You look under your desk to see if your officemates are
playing ticks.

"Tell me how you plan to do it", says the small voice (SV).

You: "By trading stocks or currencies or commodities
where you pit your intelligence and know-how against
others....just like in this job but I'd be working for
myself." You realize you were speaking out loud but
nobody is around.

SV: "OK. Sounds good. But can you tell me what kind of
win-loss ratio you'll need ?"

You: "A what?"

SV:"OOOOK, then. Perhaps you can tell me how much
you plan to invest on each trade?", SV follows rapidly.

Long silence.

SV: "Hummm. Listen, maybe you're going about this all
wrong. Allow me to suggest to "MR. Millionaire" that
more thought be given to this wishful thinking. What I'm
trying to tell you, my friend, is that it won't happen. You
just like the momentary idea. It creates just a momentary
hope that it can happen. Tell me, do you really want to
become a millionaire?"

You: "Yes, I do", you answer out loud. You look around
quickly to see if anybody is watching your strange
soliloquy.

SV: " I've heard this before".

You pull yourself up straight and suddenly feel aggressive.

You: " I'm sick and tired of making just enough to pay
my expenses. I don't like the fact that even if I move up
the ladder, I'd be topped out at about $120,000 and
that's not enough for what I want; there's too much I
want to do. Besides, with the commitment I'd have to
make to get top dollar, I wouldn't have time to enjoy the
crumbs Id' have after taxes."

SV: "Now you sound desperate"

You: "Damn right and it's about time I do something
about it", you whisper more to yourself than to SV.

SV: "But trading is so risky"

You: "At least there's a chance to make serious money
and besides...nothing ventured, nothing gained", you
say convincingly.

SV: "I like it. But do you really mean it or is this just
another momentary escape from reality?"

You:"I'm getting older and if I don't try it now, when
will I?", you ask yourself and SV. " I can feel it. If I don't
try it, I'll be sorry."

SV: "You might be sorry if you do", counters SV.

You: "Thanks for the vote of confidence". "What do you
want from me, anyway?", you ask angrily. "You think I
cant do it?"

SV:"When you start thinking about it realistically and
methodically, then I might take you seriously. Up until
now, it sounds like "same old same old". Ask yourself
if you really want to leave the world of a steady income
with all the benefits and live each day with uncertainty.

Long silence.

SV:"If you change your way of thinking, you might have
a chance", SV says with a tone of seriousness. "When
you begin by asking yourself the proper questions, then
I'll feel better about our chances."

You: "For instance?" you ask with interest.

SV:" Start doing a lot of research. Better yet, you need to
latch on to an experienced mentor who's agenda is to
help you be successful. It'll cost money and I know you
hate to pay for help you think you can get on your own.
This time, if you're serious, you need to stay away from
re-inventing the wheel. Put your ego aside and realize
that it's all about business and getting free and not about
your big ego. Learn to be a cold, calculating, technician.
Accept that it will take time to prepare and-as you know-
nothing good comes without pain. In other words, don't
quit your "day job" just yet. Be patient and set your sights
on what you're trying to accomplish and not just making
an emotional decision to be free-momentarily free, that
is. You say you want to take your destiny more into your
own hands and live your life the way you want to, but
accept that this is a real challenge in these times of "gilded
servitude". When you make the commitment for the long
term and develop a methodical plan to get where you want
to go, then I think we might have a chance. It can be done.
Others have done it...why not you-I mean us", SV says
with some pride.

There's a long silence.

SV seems to have said his piece and disappeared.

You sit in stunned silence for a minute or so and then type
in the search window: "How to invest: coaching".

Inside, you feel renewed and with a new sense of purpose.

The anxiety and frustration seems to have melted away
and you know that the commitment to make it happen
has just begun.


My best,

Norman Hallett, CEO
Subconscious Training Corporation
Makers of TradingMind Software
Tap Here NOW to be a DISCIPLINED Trader
954-757-8722

6606 NW 66th Avenue
Parkland, FL 33067
Last edited by TheRumpledOne on Tue Nov 27, 2007 10:00 pm, edited 1 time in total.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



Please do NOT PM me with trading or coding questions, post them in a thread.

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Postby TheRumpledOne » Tue Nov 27, 2007 9:58 pm

Hi AVERY,

============
Here is the next in a series of articles I'll be sending you about
the mental/emotional side of trading. The articles, together,
will comprise the major part of a new book I'm writing. Enjoy!
============


UNDERSTANDING YOUR TRADING PERSONALITY


Do you enjoy sitting in front of your computer screen all day?

Do you find it exciting to watch your trading account bobb
and weave?

Or do you prefer to set up a trade, set stops and walk away?

Are you a market voyeur or a cold dispassionate investor?

Be honest, how do you like to trade?

No particular style of trading is right or wrong. But it does
make sense to find out what style best fits your personal
disposition.

Maybe you were raised on a steady diet of Gameboy and like
the action or you may prefer the analytics of setting up and
trapping elusive profits-the intellectual hunter.

If you're a Gameboy market voyeur, you might be best
suited for scalping and short-in-and-out intraday trading.

If you're the patient hunter, perhaps you would be more
comfortable being a position trader.

Or maybe you are something in between; sometimes you
are charged with energy and free-time and feel like spending
the day in-front your computer screen and on other days you
prefer to focus on other things after setting up the trade.

The thing to understand is what type of trading you prefer
and best fits your lifestyle.

One of the beautiful things about trading is that you can
practice without incurring any risk.

As an aspiring trader, you should spend at least six months
demo trading and gaining confidence in your system and
finding the trading style you prefer.

Most people just starting have an overpowering desire to
jump in and "feel the pain".

They usually don't last but for a few weeks or months at
best.

Learning how to trade is like training to be a long distance
runner. Build up stamina and develop a strategy to use your
strengths.

God bless the demo account.

Hats off to the trading industry. They showed extraordinary
wisdom in offering the unlimited trading demo account.

They understand that having clients who understand how to
make money as a trader are clients who will provide a long
term source of revenue.

Some cynics feel that the trading industry was more
interested in creating weak traders who would be on the
other side of their trades. But to be a bit cynical, maybe the
industry may rely on the fact that most traders don't use
their demo accounts.

Perhaps they feel that most traders can't stay away from the
excitement of playing "for real" and are moths attracted to
the flame.

The flame is the emotions that greed and fear inspire
when money is on the line.

But just as possible is that the industry understands the
way to become a winner is by creating confidence in a
trading system and knowledge of what style of trading is
best suited for the trader can help to overcome the negative
effects of the normal human reaction to fear and greed.

The industry offers ways to do this but ultimately it's up to
the trader to stay away from the flame and use the free
educational tools and demo accounts available through
most brokers before risking real assets.

The demo account allows a trader to test, experiment and
build consistent procedures. Part of the experimentation
should be trying different styles of trading.

You might find you have a better aptitude with a certain
style.

For instance, you might find that you develop a feel for
momentum in how the market reacts when you are trading
intraday.

Conversely, you might find you get too stressed out and
prefer taking a position for a few days. Either way, trade
your demo account and when you feel bored with that.....
trade it some more.

When you feel that you know what the best style of trading
for you is and you feel confident that you have done
enough practice to be able to stick with your system
consistently, then it's time to prepare your psyche before
entering "the ring" and not the flame.


My best,

Norman Hallett, CEO
Subconscious Training Corporation
Makers of TradingMind Software
Tap Here NOW to be a DISCIPLINED Trader
954-757-8722






6606 NW 66th Avenue
Parkland, FL 33067
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



Please do NOT PM me with trading or coding questions, post them in a thread.

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Postby jamtheman » Sat Feb 02, 2008 1:15 pm

Good articles. Mental aspect of trading in a nut shell.

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http://www.traderslog.com/mindset.htm

Postby 4x=0 » Sun May 25, 2008 4:38 pm

The Trader?s Mindset
by Bennett McDowell

Developing ?The Trader?s Mindset? is a must for trading success and this can take some time. This is not an area where you can take a short cut or learn a formula. You usually develop it by actually trading and the experiences you gain from trading. We will help guide you towards developing ?The Trader?s Mindset? and help you handle account draw-downs, losses, and profits. Yes, profits can actually cause you stress!

You can see how powerful psychology in trading is, if you show the same successful trading approach to one hundred different traders. No two of them will trade it exactly the same way. Why? Because each trader has a unique belief system and their beliefs will determine their trading style. That is why even with a profitable and proven trading approach, many traders will fail. They do not have the proper belief system to enable them to trade well. In other words, they lack ?The Trader?s Mindset.?

When you encounter psychological issues it is best to recognize the issue, just be aware of it, don?t deny it. In order to ?fix? psychological issues we as human beings must first become aware of the problem and issues causing the problem in order to heal and ?fix? the problem. This is much of what psychoanalysis is all about. The psychologist or psycho- therapist tries to let the patient first see the problem and then the patient must believe that these issues are causing the problem in order for the patient to heal. The reason this process can take so long, perhaps even years is because the patient needs to not only recognize their problems, but must accept that there truly is a problem. They must take responsibility for their problems to heal.

Success in trading is a direct result of a sound trading system, sound money management, proper capitalization, and sound psychology. All of these must be in sync to be successful in your trading. The ?ART? system is designed to focus on all of these areas. The only area where you may need additional help once you have mastered your trading skills, is your psychology.

Psychology is the one area that you may need additional help and can take up to a year or so to resolve personal issues attaining trading success. Our consultation services focus on this aspect and if you find yourself struggling with psychological issues, you owe it to yourself to get help in this area.

Here is a list of common psychological trading issues and their causes:

Fear Of Being Stopped Out Or Fear Of Taking A Loss: The usual reason for this is that the trader fears failure and feels like he or she cannot take another loss. The trader?s ego is at stake.

Getting Out Of Trades Too Early: Relieving anxiety by closing a position. Fear of position reversing and then feeling let down. Need for instant gratification.

Adding On To A Losing Position (Doubling Down): Not wanting to admit your trade is wrong. Hoping it will come back. Again, ego is at stake.

Wishing And Hoping: Not wanting to take control or take responsibility for the trade. Inability to accept the present reality of the market place.

Compulsive Trading: Drawn to the excitement of the markets. Addiction and Gambling issues are present. Needing to feel you are in the game.

Anger After A Losing Trade: The feeling of being a victim of the markets. Unrealistic expectations. Caring too much about a specific trade. Tying your self-worth to your success in the markets. Needing approval from the markets.

Excessive Joy After A Winning Trade: Tying your self-worth to the markets. Feeling unrealistically ?in control? of the markets.

Limiting Profits: You don?t deserve to be successful. You don?t deserve money or profits. Usually psychological issues such as poor self-esteem.

Not Following Your Proven Trading System: You don?t believe it really works. You did not test it well. It does not match your personality. You want more excitement in your trading. You don?t trust your own ability to chose a successful system.

Over Thinking The Trade, Second Guessing Your Trading Signals: Fear of loss or being wrong. Wanting a sure thing where sure things don?t exist. Not understanding that loss is a part of trading and the outcome of each trade is unknown. Not accepting there is risk in trading. Not accepting the unknown.

Not Trading The Correct Position Size: Dreaming the trade will be only profitable. Not fully recognizing the risk and not
understanding the importance of money management. Refusing to take responsibility for managing your risk.

Trading Too Much: Need to conquer the market. Greed. Trying to get even with the market for a previous loss. The
excitement of trading (similar to Compulsive Trading).

Afraid To Trade: No trading system in place. Not comfortable with risk and the unknown. Fear of total loss. Fear of ridicule.
Need for control.

Irritable after the Trading Day: Emotional roller coaster due to anger, fear, and greed. Putting too much attention on trading
results and not enough on the process and learning the skill of trading. Focusing on the money too much. Unrealistic trading expectations.

Trading With Money You Cannot Afford To Lose Or Trading

With Borrowed Money: Last hope at success. Trying to be successful at something. Fear of losing your chance at
opportunity. No discipline. Greed. Desperation.

These are by no means all the psychological issues but these are the most common. They usually center around the fact that for one reason or another, the trader is not following their chosen trading approach or system. And instead prefers to wing it or trade their emotions which in trading will always get you in trouble. So, I think you can see how psychology is all important in trading.

Our goal as traders in regards to psychology is to maintain an even keel so to speak when trading. Our winning trades and losing trades should not affect us. Obviously we are trading better when we are winning, but emotionally we should strive to maintain an even balance emotionally in regards to our wins and our losses.

It will happen when it happens and when you achieve this level of mental ability; it will come after working long and hard on your problems, but will come without you knowing it. It usually happens when you least expect it.

Below is a list of what one feels after acquiring ?The Trader?s Mindset.?

-Sense of calmness
-Ability to focus on the present reality
-Not caring which way the market breaks or moves
-Always aligning trades in the direction of the market, flowing
with the market
-Not caring about the money
-Always looking to improve your skills
-Profits now accumulating and flowing in as your skills improve
-Keeping an open mind, keeping opinions to a minimum
-Accepting the risk in trading
-No Anger
-Learning from every trade
-Winning and losing trades accepted equally from an emotional
standpoint
-Enjoying the process
-Trading your chosen approach or system and not being
influenced by the market or others
-Not feeling a need to conquer or control the ?market?
-Feeling confident and feeling in control of ?yourself?
-A sense of not forcing the markets or yourself
-Trading with money you can afford to risk
-No feeling of ever being victimized by the markets
-Taking full responsibility for your trading

When you can read the list above and genuinely say that?s me, you have arrived!

2006? TradersCoach.com, Inc. All Rights Reserved.

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http://www.traderslog.com/mindset.htm

Postby 4x=0 » Sun May 25, 2008 4:39 pm

The Trader?s Mindset
by Bennett McDowell

Developing ?The Trader?s Mindset? is a must for trading success and this can take some time. This is not an area where you can take a short cut or learn a formula. You usually develop it by actually trading and the experiences you gain from trading. We will help guide you towards developing ?The Trader?s Mindset? and help you handle account draw-downs, losses, and profits. Yes, profits can actually cause you stress!

You can see how powerful psychology in trading is, if you show the same successful trading approach to one hundred different traders. No two of them will trade it exactly the same way. Why? Because each trader has a unique belief system and their beliefs will determine their trading style. That is why even with a profitable and proven trading approach, many traders will fail. They do not have the proper belief system to enable them to trade well. In other words, they lack ?The Trader?s Mindset.?

When you encounter psychological issues it is best to recognize the issue, just be aware of it, don?t deny it. In order to ?fix? psychological issues we as human beings must first become aware of the problem and issues causing the problem in order to heal and ?fix? the problem. This is much of what psychoanalysis is all about. The psychologist or psycho- therapist tries to let the patient first see the problem and then the patient must believe that these issues are causing the problem in order for the patient to heal. The reason this process can take so long, perhaps even years is because the patient needs to not only recognize their problems, but must accept that there truly is a problem. They must take responsibility for their problems to heal.

Success in trading is a direct result of a sound trading system, sound money management, proper capitalization, and sound psychology. All of these must be in sync to be successful in your trading. The ?ART? system is designed to focus on all of these areas. The only area where you may need additional help once you have mastered your trading skills, is your psychology.

Psychology is the one area that you may need additional help and can take up to a year or so to resolve personal issues attaining trading success. Our consultation services focus on this aspect and if you find yourself struggling with psychological issues, you owe it to yourself to get help in this area.

Here is a list of common psychological trading issues and their causes:

Fear Of Being Stopped Out Or Fear Of Taking A Loss: The usual reason for this is that the trader fears failure and feels like he or she cannot take another loss. The trader?s ego is at stake.

Getting Out Of Trades Too Early: Relieving anxiety by closing a position. Fear of position reversing and then feeling let down. Need for instant gratification.

Adding On To A Losing Position (Doubling Down): Not wanting to admit your trade is wrong. Hoping it will come back. Again, ego is at stake.

Wishing And Hoping: Not wanting to take control or take responsibility for the trade. Inability to accept the present reality of the market place.

Compulsive Trading: Drawn to the excitement of the markets. Addiction and Gambling issues are present. Needing to feel you are in the game.

Anger After A Losing Trade: The feeling of being a victim of the markets. Unrealistic expectations. Caring too much about a specific trade. Tying your self-worth to your success in the markets. Needing approval from the markets.

Excessive Joy After A Winning Trade: Tying your self-worth to the markets. Feeling unrealistically ?in control? of the markets.

Limiting Profits: You don?t deserve to be successful. You don?t deserve money or profits. Usually psychological issues such as poor self-esteem.

Not Following Your Proven Trading System: You don?t believe it really works. You did not test it well. It does not match your personality. You want more excitement in your trading. You don?t trust your own ability to chose a successful system.

Over Thinking The Trade, Second Guessing Your Trading Signals: Fear of loss or being wrong. Wanting a sure thing where sure things don?t exist. Not understanding that loss is a part of trading and the outcome of each trade is unknown. Not accepting there is risk in trading. Not accepting the unknown.

Not Trading The Correct Position Size: Dreaming the trade will be only profitable. Not fully recognizing the risk and not
understanding the importance of money management. Refusing to take responsibility for managing your risk.

Trading Too Much: Need to conquer the market. Greed. Trying to get even with the market for a previous loss. The
excitement of trading (similar to Compulsive Trading).

Afraid To Trade: No trading system in place. Not comfortable with risk and the unknown. Fear of total loss. Fear of ridicule.
Need for control.

Irritable after the Trading Day: Emotional roller coaster due to anger, fear, and greed. Putting too much attention on trading
results and not enough on the process and learning the skill of trading. Focusing on the money too much. Unrealistic trading expectations.

Trading With Money You Cannot Afford To Lose Or Trading

With Borrowed Money: Last hope at success. Trying to be successful at something. Fear of losing your chance at
opportunity. No discipline. Greed. Desperation.

These are by no means all the psychological issues but these are the most common. They usually center around the fact that for one reason or another, the trader is not following their chosen trading approach or system. And instead prefers to wing it or trade their emotions which in trading will always get you in trouble. So, I think you can see how psychology is all important in trading.

Our goal as traders in regards to psychology is to maintain an even keel so to speak when trading. Our winning trades and losing trades should not affect us. Obviously we are trading better when we are winning, but emotionally we should strive to maintain an even balance emotionally in regards to our wins and our losses.

It will happen when it happens and when you achieve this level of mental ability; it will come after working long and hard on your problems, but will come without you knowing it. It usually happens when you least expect it.

Below is a list of what one feels after acquiring ?The Trader?s Mindset.?

-Sense of calmness
-Ability to focus on the present reality
-Not caring which way the market breaks or moves
-Always aligning trades in the direction of the market, flowing
with the market
-Not caring about the money
-Always looking to improve your skills
-Profits now accumulating and flowing in as your skills improve
-Keeping an open mind, keeping opinions to a minimum
-Accepting the risk in trading
-No Anger
-Learning from every trade
-Winning and losing trades accepted equally from an emotional
standpoint
-Enjoying the process
-Trading your chosen approach or system and not being
influenced by the market or others
-Not feeling a need to conquer or control the ?market?
-Feeling confident and feeling in control of ?yourself?
-A sense of not forcing the markets or yourself
-Trading with money you can afford to risk
-No feeling of ever being victimized by the markets
-Taking full responsibility for your trading

When you can read the list above and genuinely say that?s me, you have arrived!

2006? TradersCoach.com, Inc. All Rights Reserved.

4x=0
rank: 150+ posts
rank: 150+ posts
Posts: 410
Joined: Tue Oct 17, 2006 10:53 pm
Reputation: 0
Gender: Male

http://www.traderslog.com/mindset.htm

Postby 4x=0 » Sun May 25, 2008 4:39 pm

The Trader?s Mindset
by Bennett McDowell

Developing ?The Trader?s Mindset? is a must for trading success and this can take some time. This is not an area where you can take a short cut or learn a formula. You usually develop it by actually trading and the experiences you gain from trading. We will help guide you towards developing ?The Trader?s Mindset? and help you handle account draw-downs, losses, and profits. Yes, profits can actually cause you stress!

You can see how powerful psychology in trading is, if you show the same successful trading approach to one hundred different traders. No two of them will trade it exactly the same way. Why? Because each trader has a unique belief system and their beliefs will determine their trading style. That is why even with a profitable and proven trading approach, many traders will fail. They do not have the proper belief system to enable them to trade well. In other words, they lack ?The Trader?s Mindset.?

When you encounter psychological issues it is best to recognize the issue, just be aware of it, don?t deny it. In order to ?fix? psychological issues we as human beings must first become aware of the problem and issues causing the problem in order to heal and ?fix? the problem. This is much of what psychoanalysis is all about. The psychologist or psycho- therapist tries to let the patient first see the problem and then the patient must believe that these issues are causing the problem in order for the patient to heal. The reason this process can take so long, perhaps even years is because the patient needs to not only recognize their problems, but must accept that there truly is a problem. They must take responsibility for their problems to heal.

Success in trading is a direct result of a sound trading system, sound money management, proper capitalization, and sound psychology. All of these must be in sync to be successful in your trading. The ?ART? system is designed to focus on all of these areas. The only area where you may need additional help once you have mastered your trading skills, is your psychology.

Psychology is the one area that you may need additional help and can take up to a year or so to resolve personal issues attaining trading success. Our consultation services focus on this aspect and if you find yourself struggling with psychological issues, you owe it to yourself to get help in this area.

Here is a list of common psychological trading issues and their causes:

Fear Of Being Stopped Out Or Fear Of Taking A Loss: The usual reason for this is that the trader fears failure and feels like he or she cannot take another loss. The trader?s ego is at stake.

Getting Out Of Trades Too Early: Relieving anxiety by closing a position. Fear of position reversing and then feeling let down. Need for instant gratification.

Adding On To A Losing Position (Doubling Down): Not wanting to admit your trade is wrong. Hoping it will come back. Again, ego is at stake.

Wishing And Hoping: Not wanting to take control or take responsibility for the trade. Inability to accept the present reality of the market place.

Compulsive Trading: Drawn to the excitement of the markets. Addiction and Gambling issues are present. Needing to feel you are in the game.

Anger After A Losing Trade: The feeling of being a victim of the markets. Unrealistic expectations. Caring too much about a specific trade. Tying your self-worth to your success in the markets. Needing approval from the markets.

Excessive Joy After A Winning Trade: Tying your self-worth to the markets. Feeling unrealistically ?in control? of the markets.

Limiting Profits: You don?t deserve to be successful. You don?t deserve money or profits. Usually psychological issues such as poor self-esteem.

Not Following Your Proven Trading System: You don?t believe it really works. You did not test it well. It does not match your personality. You want more excitement in your trading. You don?t trust your own ability to chose a successful system.

Over Thinking The Trade, Second Guessing Your Trading Signals: Fear of loss or being wrong. Wanting a sure thing where sure things don?t exist. Not understanding that loss is a part of trading and the outcome of each trade is unknown. Not accepting there is risk in trading. Not accepting the unknown.

Not Trading The Correct Position Size: Dreaming the trade will be only profitable. Not fully recognizing the risk and not
understanding the importance of money management. Refusing to take responsibility for managing your risk.

Trading Too Much: Need to conquer the market. Greed. Trying to get even with the market for a previous loss. The
excitement of trading (similar to Compulsive Trading).

Afraid To Trade: No trading system in place. Not comfortable with risk and the unknown. Fear of total loss. Fear of ridicule.
Need for control.

Irritable after the Trading Day: Emotional roller coaster due to anger, fear, and greed. Putting too much attention on trading
results and not enough on the process and learning the skill of trading. Focusing on the money too much. Unrealistic trading expectations.

Trading With Money You Cannot Afford To Lose Or Trading

With Borrowed Money: Last hope at success. Trying to be successful at something. Fear of losing your chance at
opportunity. No discipline. Greed. Desperation.

These are by no means all the psychological issues but these are the most common. They usually center around the fact that for one reason or another, the trader is not following their chosen trading approach or system. And instead prefers to wing it or trade their emotions which in trading will always get you in trouble. So, I think you can see how psychology is all important in trading.

Our goal as traders in regards to psychology is to maintain an even keel so to speak when trading. Our winning trades and losing trades should not affect us. Obviously we are trading better when we are winning, but emotionally we should strive to maintain an even balance emotionally in regards to our wins and our losses.

It will happen when it happens and when you achieve this level of mental ability; it will come after working long and hard on your problems, but will come without you knowing it. It usually happens when you least expect it.

Below is a list of what one feels after acquiring ?The Trader?s Mindset.?

-Sense of calmness
-Ability to focus on the present reality
-Not caring which way the market breaks or moves
-Always aligning trades in the direction of the market, flowing
with the market
-Not caring about the money
-Always looking to improve your skills
-Profits now accumulating and flowing in as your skills improve
-Keeping an open mind, keeping opinions to a minimum
-Accepting the risk in trading
-No Anger
-Learning from every trade
-Winning and losing trades accepted equally from an emotional
standpoint
-Enjoying the process
-Trading your chosen approach or system and not being
influenced by the market or others
-Not feeling a need to conquer or control the ?market?
-Feeling confident and feeling in control of ?yourself?
-A sense of not forcing the markets or yourself
-Trading with money you can afford to risk
-No feeling of ever being victimized by the markets
-Taking full responsibility for your trading

When you can read the list above and genuinely say that?s me, you have arrived!

2006? TradersCoach.com, Inc. All Rights Reserved.

4x=0
rank: 150+ posts
rank: 150+ posts
Posts: 410
Joined: Tue Oct 17, 2006 10:53 pm
Reputation: 0
Gender: Male

http://www.traderslog.com/mindset.htm

Postby 4x=0 » Sun May 25, 2008 4:39 pm

The Trader?s Mindset
by Bennett McDowell

Developing ?The Trader?s Mindset? is a must for trading success and this can take some time. This is not an area where you can take a short cut or learn a formula. You usually develop it by actually trading and the experiences you gain from trading. We will help guide you towards developing ?The Trader?s Mindset? and help you handle account draw-downs, losses, and profits. Yes, profits can actually cause you stress!

You can see how powerful psychology in trading is, if you show the same successful trading approach to one hundred different traders. No two of them will trade it exactly the same way. Why? Because each trader has a unique belief system and their beliefs will determine their trading style. That is why even with a profitable and proven trading approach, many traders will fail. They do not have the proper belief system to enable them to trade well. In other words, they lack ?The Trader?s Mindset.?

When you encounter psychological issues it is best to recognize the issue, just be aware of it, don?t deny it. In order to ?fix? psychological issues we as human beings must first become aware of the problem and issues causing the problem in order to heal and ?fix? the problem. This is much of what psychoanalysis is all about. The psychologist or psycho- therapist tries to let the patient first see the problem and then the patient must believe that these issues are causing the problem in order for the patient to heal. The reason this process can take so long, perhaps even years is because the patient needs to not only recognize their problems, but must accept that there truly is a problem. They must take responsibility for their problems to heal.

Success in trading is a direct result of a sound trading system, sound money management, proper capitalization, and sound psychology. All of these must be in sync to be successful in your trading. The ?ART? system is designed to focus on all of these areas. The only area where you may need additional help once you have mastered your trading skills, is your psychology.

Psychology is the one area that you may need additional help and can take up to a year or so to resolve personal issues attaining trading success. Our consultation services focus on this aspect and if you find yourself struggling with psychological issues, you owe it to yourself to get help in this area.

Here is a list of common psychological trading issues and their causes:

Fear Of Being Stopped Out Or Fear Of Taking A Loss: The usual reason for this is that the trader fears failure and feels like he or she cannot take another loss. The trader?s ego is at stake.

Getting Out Of Trades Too Early: Relieving anxiety by closing a position. Fear of position reversing and then feeling let down. Need for instant gratification.

Adding On To A Losing Position (Doubling Down): Not wanting to admit your trade is wrong. Hoping it will come back. Again, ego is at stake.

Wishing And Hoping: Not wanting to take control or take responsibility for the trade. Inability to accept the present reality of the market place.

Compulsive Trading: Drawn to the excitement of the markets. Addiction and Gambling issues are present. Needing to feel you are in the game.

Anger After A Losing Trade: The feeling of being a victim of the markets. Unrealistic expectations. Caring too much about a specific trade. Tying your self-worth to your success in the markets. Needing approval from the markets.

Excessive Joy After A Winning Trade: Tying your self-worth to the markets. Feeling unrealistically ?in control? of the markets.

Limiting Profits: You don?t deserve to be successful. You don?t deserve money or profits. Usually psychological issues such as poor self-esteem.

Not Following Your Proven Trading System: You don?t believe it really works. You did not test it well. It does not match your personality. You want more excitement in your trading. You don?t trust your own ability to chose a successful system.

Over Thinking The Trade, Second Guessing Your Trading Signals: Fear of loss or being wrong. Wanting a sure thing where sure things don?t exist. Not understanding that loss is a part of trading and the outcome of each trade is unknown. Not accepting there is risk in trading. Not accepting the unknown.

Not Trading The Correct Position Size: Dreaming the trade will be only profitable. Not fully recognizing the risk and not
understanding the importance of money management. Refusing to take responsibility for managing your risk.

Trading Too Much: Need to conquer the market. Greed. Trying to get even with the market for a previous loss. The
excitement of trading (similar to Compulsive Trading).

Afraid To Trade: No trading system in place. Not comfortable with risk and the unknown. Fear of total loss. Fear of ridicule.
Need for control.

Irritable after the Trading Day: Emotional roller coaster due to anger, fear, and greed. Putting too much attention on trading
results and not enough on the process and learning the skill of trading. Focusing on the money too much. Unrealistic trading expectations.

Trading With Money You Cannot Afford To Lose Or Trading

With Borrowed Money: Last hope at success. Trying to be successful at something. Fear of losing your chance at
opportunity. No discipline. Greed. Desperation.

These are by no means all the psychological issues but these are the most common. They usually center around the fact that for one reason or another, the trader is not following their chosen trading approach or system. And instead prefers to wing it or trade their emotions which in trading will always get you in trouble. So, I think you can see how psychology is all important in trading.

Our goal as traders in regards to psychology is to maintain an even keel so to speak when trading. Our winning trades and losing trades should not affect us. Obviously we are trading better when we are winning, but emotionally we should strive to maintain an even balance emotionally in regards to our wins and our losses.

It will happen when it happens and when you achieve this level of mental ability; it will come after working long and hard on your problems, but will come without you knowing it. It usually happens when you least expect it.

Below is a list of what one feels after acquiring ?The Trader?s Mindset.?

-Sense of calmness
-Ability to focus on the present reality
-Not caring which way the market breaks or moves
-Always aligning trades in the direction of the market, flowing
with the market
-Not caring about the money
-Always looking to improve your skills
-Profits now accumulating and flowing in as your skills improve
-Keeping an open mind, keeping opinions to a minimum
-Accepting the risk in trading
-No Anger
-Learning from every trade
-Winning and losing trades accepted equally from an emotional
standpoint
-Enjoying the process
-Trading your chosen approach or system and not being
influenced by the market or others
-Not feeling a need to conquer or control the ?market?
-Feeling confident and feeling in control of ?yourself?
-A sense of not forcing the markets or yourself
-Trading with money you can afford to risk
-No feeling of ever being victimized by the markets
-Taking full responsibility for your trading

When you can read the list above and genuinely say that?s me, you have arrived!

2006? TradersCoach.com, Inc. All Rights Reserved.

4x=0
rank: 150+ posts
rank: 150+ posts
Posts: 410
Joined: Tue Oct 17, 2006 10:53 pm
Reputation: 0
Gender: Male

Postby 4x=0 » Sun May 25, 2008 4:40 pm

The Trader?s Mindset
by Bennett McDowell

Developing ?The Trader?s Mindset? is a must for trading success and this can take some time. This is not an area where you can take a short cut or learn a formula. You usually develop it by actually trading and the experiences you gain from trading. We will help guide you towards developing ?The Trader?s Mindset? and help you handle account draw-downs, losses, and profits. Yes, profits can actually cause you stress!

You can see how powerful psychology in trading is, if you show the same successful trading approach to one hundred different traders. No two of them will trade it exactly the same way. Why? Because each trader has a unique belief system and their beliefs will determine their trading style. That is why even with a profitable and proven trading approach, many traders will fail. They do not have the proper belief system to enable them to trade well. In other words, they lack ?The Trader?s Mindset.?

When you encounter psychological issues it is best to recognize the issue, just be aware of it, don?t deny it. In order to ?fix? psychological issues we as human beings must first become aware of the problem and issues causing the problem in order to heal and ?fix? the problem. This is much of what psychoanalysis is all about. The psychologist or psycho- therapist tries to let the patient first see the problem and then the patient must believe that these issues are causing the problem in order for the patient to heal. The reason this process can take so long, perhaps even years is because the patient needs to not only recognize their problems, but must accept that there truly is a problem. They must take responsibility for their problems to heal.

Success in trading is a direct result of a sound trading system, sound money management, proper capitalization, and sound psychology. All of these must be in sync to be successful in your trading. The ?ART? system is designed to focus on all of these areas. The only area where you may need additional help once you have mastered your trading skills, is your psychology.

Psychology is the one area that you may need additional help and can take up to a year or so to resolve personal issues attaining trading success. Our consultation services focus on this aspect and if you find yourself struggling with psychological issues, you owe it to yourself to get help in this area.

Here is a list of common psychological trading issues and their causes:

Fear Of Being Stopped Out Or Fear Of Taking A Loss: The usual reason for this is that the trader fears failure and feels like he or she cannot take another loss. The trader?s ego is at stake.

Getting Out Of Trades Too Early: Relieving anxiety by closing a position. Fear of position reversing and then feeling let down. Need for instant gratification.

Adding On To A Losing Position (Doubling Down): Not wanting to admit your trade is wrong. Hoping it will come back. Again, ego is at stake.

Wishing And Hoping: Not wanting to take control or take responsibility for the trade. Inability to accept the present reality of the market place.

Compulsive Trading: Drawn to the excitement of the markets. Addiction and Gambling issues are present. Needing to feel you are in the game.

Anger After A Losing Trade: The feeling of being a victim of the markets. Unrealistic expectations. Caring too much about a specific trade. Tying your self-worth to your success in the markets. Needing approval from the markets.

Excessive Joy After A Winning Trade: Tying your self-worth to the markets. Feeling unrealistically ?in control? of the markets.

Limiting Profits: You don?t deserve to be successful. You don?t deserve money or profits. Usually psychological issues such as poor self-esteem.

Not Following Your Proven Trading System: You don?t believe it really works. You did not test it well. It does not match your personality. You want more excitement in your trading. You don?t trust your own ability to chose a successful system.

Over Thinking The Trade, Second Guessing Your Trading Signals: Fear of loss or being wrong. Wanting a sure thing where sure things don?t exist. Not understanding that loss is a part of trading and the outcome of each trade is unknown. Not accepting there is risk in trading. Not accepting the unknown.

Not Trading The Correct Position Size: Dreaming the trade will be only profitable. Not fully recognizing the risk and not
understanding the importance of money management. Refusing to take responsibility for managing your risk.

Trading Too Much: Need to conquer the market. Greed. Trying to get even with the market for a previous loss. The
excitement of trading (similar to Compulsive Trading).

Afraid To Trade: No trading system in place. Not comfortable with risk and the unknown. Fear of total loss. Fear of ridicule.
Need for control.

Irritable after the Trading Day: Emotional roller coaster due to anger, fear, and greed. Putting too much attention on trading
results and not enough on the process and learning the skill of trading. Focusing on the money too much. Unrealistic trading expectations.

Trading With Money You Cannot Afford To Lose Or Trading

With Borrowed Money: Last hope at success. Trying to be successful at something. Fear of losing your chance at
opportunity. No discipline. Greed. Desperation.

These are by no means all the psychological issues but these are the most common. They usually center around the fact that for one reason or another, the trader is not following their chosen trading approach or system. And instead prefers to wing it or trade their emotions which in trading will always get you in trouble. So, I think you can see how psychology is all important in trading.

Our goal as traders in regards to psychology is to maintain an even keel so to speak when trading. Our winning trades and losing trades should not affect us. Obviously we are trading better when we are winning, but emotionally we should strive to maintain an even balance emotionally in regards to our wins and our losses.

It will happen when it happens and when you achieve this level of mental ability; it will come after working long and hard on your problems, but will come without you knowing it. It usually happens when you least expect it.

Below is a list of what one feels after acquiring ?The Trader?s Mindset.?

-Sense of calmness
-Ability to focus on the present reality
-Not caring which way the market breaks or moves
-Always aligning trades in the direction of the market, flowing
with the market
-Not caring about the money
-Always looking to improve your skills
-Profits now accumulating and flowing in as your skills improve
-Keeping an open mind, keeping opinions to a minimum
-Accepting the risk in trading
-No Anger
-Learning from every trade
-Winning and losing trades accepted equally from an emotional
standpoint
-Enjoying the process
-Trading your chosen approach or system and not being
influenced by the market or others
-Not feeling a need to conquer or control the ?market?
-Feeling confident and feeling in control of ?yourself?
-A sense of not forcing the markets or yourself
-Trading with money you can afford to risk
-No feeling of ever being victimized by the markets
-Taking full responsibility for your trading

When you can read the list above and genuinely say that?s me, you have arrived!

2006? TradersCoach.com, Inc. All Rights Reserved.

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