Psychology of Trading

Your overall trading psychology consists of your holistic attitude - the way with which you approach & view trading the markets: Your psychology when trading is definitely an important part of successful trading. Your psychology consists of your attitude - the way with which you approach and view trading. Most of my recent trading rants are about psychology. To trade successfully, you must respect the markets for what they are and understand its relationship with you. (Read "The Market is Against Me)

You must also understand your attitude towards your profession. If you have no respect for trading then it will almost certainly effect how you trade. Just as someone who has no respect for their wives, abusing and condescending to her in their life, you too would treat the markets accordingly in your trades. That was why I have done a few posts about share trading and gambling. I was in denial that trading stocks actively was gambling. I had to resolve that issue because it simply wasn’t the truth. And if you think I’m finished with that topic think again.

There are plenty of other facets of trading psychology that I will delve into in the coming weeks. There is also overconfidence in trading, your risk taking profile and more!