Mental Skills and the Psychology of Trading

Mental Skills and the Psychology of Trading Most traders do not realize that successful trading comes from a belief and confidence within oneself. It’s an attitude! It’s thinking like a winner. It’s trading to win, not trading to lose. The fact is, trading, as all of you should know, is a zero sum game. You either are a winner or a loser. Why does a trader let his loss accumulate? Why does a trader snatch a profit and not let it run? When you are wrong, why don’t you admit it? All these answers come from within. It’s trading psychology not technical knowledge. For anyone preparing a trading plan, the first thing you must do is to get to know yourself. This may seem silly, but 95% of trading plans that I have seen do not cover this important aspect.

Source: Jay Lakhani

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