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Psychology

It is almost impossible to earn a living from the markets without a thorough understanding of how your psychology plays a huge part in your success.

This means that you need to be completely at peace with yourself and whatever trading ‘setup’ or ‘style’ you use. Some great traders have managed to control this aspect of their self by implementing very strict, almost mechanical rules to their system. My approach is quite different and instead of trying to compartmentalise those aspects of myself that would be considered bad for trading (my emotion, instinct, gut, greed, fear, everything that makes up me), I am trying to embrace them all and use them as my trading edge.

In order to do this, it is important that I am able to fully accept who I am and what I am, and find a way to fuse all of these characteristics into a ‘style’.

In much the same way that I need to tap into every aspect of my being in my practice of martial arts, my trading requires no less, and these posts sum up my psychological journey so far.

Trading Depression; Does It Affect You?

Do you admit your trading losses? Do they depress you? Believe it or not, losing is not only essential for your health and wellbeing, but it is actually vital to your longterm success as a trader. You see, ‘losing’ trades are no more inseperable from ‘winning’ trades as the moon is from its reflection in the lake. Neither can exist without the other…

When to Close Trades for Profit

Have you ever found yourself second guessing when you should close your positions? I had this very same dilemma today with a position I opened yesterday and although I fretted like a girl about it in the beginning, I’ve found a good strategy to help me choose when to close.

Too Scared to Play Today

Been a quiet day today after the big losses of yesterday. I basically bottled out of any trades for the best part of the day because yesterday’s £100+ loss in one trade really shook me up. When curiosity got the better of me and I logged into my account I was pleasantly surprised to find my only open position in Chime Communications (CHW) was up by 5 points at £10 …Read More