As both a trader and Trading coach I had the Privilege to interact with lot of traders around the world and train lot of traders . I want to share something with you that My Trading Guru told me to repeat again and again famous Quote of Bruce Lee so that every cell of my Body is in Sync and becomes part of My strategy:
“Knowing is not enough, we must apply. Willing is not enough, we must do.”
Effective trading psychology is more than inspirational quotes from traders who are profitable. The actual internal emotional experience of each trader is unique and we cannot apply the same solution to all traders.
All the analysis in the world, the best trading plan, the best charts, and a statistical edge will not guarantee profits. May traders i have interacted have what we call in psychological term “Profit Gap” meaning they are not able to get the full potential of there strategy,results what they get is almost 50% of logical profit they might have earned if they have applied there strategy properly. Trader requires to think in “NOW” moment not what has happened in past .Traders justify decisions with data and logic, but in the heat of the moment, there will always be emotion (both conscious and subconscious) present that accompanies the decision to buy or sell.
Ideal Trading mind is trading without fear .Fear of Market to limit themselves Fear is not created by market but we create fear by interpretation
Most of traders need to train on 2 aspects to improve psychology
- Way our Minds are Wired Training mind to disassociate from the outcome of last trade
- Social Upbringing
Trading Mind is wired for 2 things we need to be concerned about
- To Associate
- To avoid pain
Everyone faces the same potential mental traps and biases. The reality is that its how we deal with them that makes the difference.
Knowing how your personal filter operates is part of the foundation for improved performance and it Needs to be Learned. Either you can do it by yourself or Learn from a Guru who will help in shortening the learning Curve.