The Winning Trading Psychology - sure way for consistent profits
Beginning
Welcome to the most important and the least focused aspect of trading. Psychology is the behavior of the mind. This behavior is external as well internal, however the deep roots of our behavior originate from our own subconscious mind. We all have been feeding our subconscious from the moment we were born. Today the way you see the world, the way you form opinions , the way you get emotional swings, the way you approach any given problem and the way you expect or hope is deeply grounded into your subconscious. Perhaps you may think what this all has to do with my trading career? Not only trading career, but your psychology marks a big difference in all other aspects of life. The worst attitude we have been wired since ages is “Attached Expectation”. Believe me , this attitude is a slow , sweet and sure killer. We constantly rotate from three major states of mind. They are Positve, Neutral and Negative , only a pinch full percent of people live in the 4th dimension i.e. PEACE. This is the best state of mind you will ever have. Peace is as good as having mind yet not having it! In peace you do not perceive the world as per your views. You just feel the reality , you just enjoy the “ NOW”. In peace state of mind you just do the things, do the “ Process” without the hard expectation of “ Results”. You just enjoy what you do. THIS IS THE HEART OF WINNING PSYCHOLOGY. YOU JUST HAVE PEACE IRRESPECTIVE OF THE RESULTS. IF YOU TRADE WITH THIS WINNING PSYCHOLY , THE CUP IS ONLY YOURS!
We have just scratched the surface of Trading Psychology. Being in peace is the main state of mind when you trade. However there are also many other blocks which you need to dissolve. Only when you dissolve them, the victory is yours. At this stage if you choose to simply log off this page, it’s your unfortunate choise of failure. However if you want to be a real time consistently profitable trader, please do continue to explore the beautiful dimensions of Trading Psychology.
In my early days of trading career, I knew the only way to succeed in markets was having a very high percent trading system. I back tested the charts, sleepless nights were spent to back testing them. I was really excited that I have the world’s most secret edge and nobody could stop me from making billions! But something was inside me which kept on taking me on the wrong trades. The problem was not with the Trading system. The beast was within me. I never tried to tame this best and make it my SWEET INNOCENT PUPPY. The real problem started hitting me. It was that I spent most of my time on charts, the past , back testing , curve fitting , searching for the methods and never thought of training my own mind! Very few hours of week were spent live trading. I think this is the most crucial turn in my trading career than any other trading methods could have made it! I started to spend more time live trading and only a single day of the week for my research and development. I was introduced with the “BEAST” in my own view. I began to read everything on psychology I could. Still the problems weren’t vanishing. Now I started to realize there was actually no problem, I just had to change my perception and integrate or realize the trading psychology. Trading psychology is like enlightenment. You began to have its fruits only when you realize what you learn. This was the turning point in my trading career that I began to realize the trading psychology.
Let us now be more specific in terms of trading psychology. Trading can be seen as MTJ analogy. What is MTJ analogy? MAP – TOUR – JOURNEY. Most of the traders spend their trading life span in the first two aspects i.e. MAP and TOUR. Most of them resign the beginning of JOURNEY.
MAP- in trading terms , it is Analysis whether Technical , Fundamental or any other. Most traders master the MAP. They are good guides. They know the sea route from Pacific to Atlantic. In summary they are very good in formulating their own strategies and plans. If you have traveled through Cruise or via any other Sea route, you know what it is in REAL TIME. You must have seen people fading, people getting scared and you must have experienced the emotion at that moment. Perfecting the MAP and taking a journey are really two contrasting worlds. This is where you must realize that the most important aspect of trading is Journey. I did not say that MAPS are not important. Infact, all three are linked with each other. MAPS (methods) – TOUR (Demo trading) and JOURNEY (LIVE ACCOUNTS) are linked with each other in varying proportion. All the three aspects are very important. A trader can not survive without the lack of any one factor. However, the focus should be on journey.
Tour- this is taking a Demo Account and trying to get a feel of Live account. This aspect is definitely good and also very important before you go live. I know many traders perform very well on demo accounts and hardly few of them earn good out of live accounts. This is because you don’t treat the Demo accounts like live ones. How can you fool yourself! Thus at this stage of trading you have not seen your own enemy- the beast within.
Journey – The real live account. This is where you will battle with yourself. Your conscious and subconscious mind will fight. You will have to face many beasts within you like greed, fear, Ignorance, Arrogance, Frustration and the KING OF THEM “ATTACHED EXPECTATION” Yes you read it right! Your stress to perform, your focus on single trade result and your impatience will throw you out of trading. This is the fact that why most intelligent and most smart people fail in trading business. They will master everything but not the beast within.
If you are still reading at this stage, the odds highly favour for YOUR SUCCESS. You are now very close to meet an INNOCENT, LOVLY PUPPY WITHIN YOU.
Stay Tuned ...............
Best Regards
Winston
Trading is a delicate balance of Strategy , Money management and Psychology