The Psychology Of Trading

http://www.tradinginanutshell.com/

Psychology counts for 60% of your trading success (Money management and your trading system count for the other 40%).

Imagine for a moment that you have a trading system that gives you 99% accuracy. Without the correct psychology, you will find yourself manually over-riding the system, not doing what you were supposed to do and failing to act when you were supposed to. That is what we term as impulse trading. Trading on emotion is one sure way to financial disaster.

For clear ideas on how to develop your trading psychology, visit: http://www.tradinginanutshell.com/

Category:

Education

Tags:

• trading psychology
• learn how to trade
• market psychology

[djenyns]

Thanks for the input Chipper... good insight.

[VanTharpTrading]

Good insight and interesting video

[Clipper52a]

This experiment makes sense from a real life trading perspective where a trader is expected to make 4 trades or more with roughly the same position sizing. The more trades you make, the more likely you will achieve your superior odds. However, this experiment asked a respondent to commit one and only one pick, therefore, choosing a certainty outcome is best.