What separates a winning trader from a losing trader is psychology. Trading psychology, for those new to the subject, refers to the emotional aspects dictating a trader’s decisions. Irrespective of the trading plan employed, good psychology is a must-have trait for any trader. Learning to govern emotions and develop good decision-making skills will, unequivocally, improve … Continue reading 5 Must Read Trading Psychology Books
Common among newer traders, the temptation to incorporate as many trading indicators as possible is appealing. The rationale behind this approach is simple: if most of the technical studies reach a similar conclusion, buy or sell in the direction of consensus. While this may appear a reasonable technique, it encourages a phase known as analysis … Continue reading Combatting the Dreaded Analysis Paralysis
Fearful money, or as we like to refer to it as ‘hot money’, is capital that a trader has a strong emotional attachment to. In other words, it is money that one CANNOT afford to lose, and therefore, should not really be using it to trade the markets with. An example of hot money is … Continue reading What Does Fearful Money mean to Traders?
Trading consistency epitomises financial freedom, providing traders choice and independence. For most, this was the motive behind initially getting involved in trading – being able to live the life you want on your terms. Learning to trade the markets, however, requires a substantial time investment, often underestimated by newer traders. Several factors need checking off; … Continue reading How Long Will It Take Before I Can Expect Trading Consistency?
‘Three great forces rule the world: stupidity, fear and greed’ – Albert Einstein. Greed and fear, two opposing emotional conditions, are principal drivers that have a profound impact on our lives. And unless you’re a robot coated in human skin, dealing with greed and fear is inevitable in trading. Greed and fear: a brief history … Continue reading An Introduction to Greed and Fear in the Financial Markets