In trading YOU ARE PROBLEM and more importantly YOU ARE SOLUTION also.
Problems you face in Trading :
1. Not able to define , back test and forward test – trading strategy.
2. Had trading strategy but not able to execute it properly.
3. Able to execute trading strategy properly for first few trades but during loss phase (Drawdown period) not able to stick to trading strategy.
4.After few winning trades , you are experiencing over excited / over confidence / euphoria state of mind.
If you are experiencing above problems means you don’t have appropriate psychological skills required to become consistently successful trader.
“Know that one thing by knowing which everything else become known…..”
To become consistently successful trader , you must have to acquire highly sophisticated psychological skills :
1. Knowledge about yourself : Who you are ? How your body and mind function under different conditions
2.Knowledge about Market ; How prices move? Who are players behind it? and How we depend upon them for our opportunity and output of that opportunity.
3.Knowledge about technical Analysis : What are the Inherited limitations of technical analysis? Why we are not able to catch each and every strong move that occur in the market? Why there is non predictable random distribution between PROFIT and LOSS trades.
Major emotions which is impacting your trading adversely :
1. Fear of Loss
2.Greed for Profit
On surface it look like that , they are two different emotions but in reality they are just like equal and opposite sides of same coin. As one disappear another also disappear automatically.
Only reason behind fear of loss is Expectation for profit. Once you become completely and absolutely free from expectation of profit , you will automatically becomes free from fear of loss.
Fear (F.E.A.R) = Fantasized Expectations Appearing Real .
To know, learn and master the Trading Psychology Click Here .