Here is a great clip on the psychology of trading. It can help us better understand our own trading psychology and the importance of psychology in trading.
1. Remember that becoming a profitable trader is a journey, not a destination. There is no such thing as a trader who only wins or loses. Try to trade a little better every day and take pleasure in your own progress. Concentrate on learning the art of technical analysis and improving your trading skills, rather than just focusing on how much you win or lose.
2. as long as their own in accordance with their own trading plan to do should be done transactions, then congratulate themselves, the deal to feel at ease, and do not care whether the deal in the end is earned or lost.
3. make money, don't be too complacent, and don't be too dejected when you lose money. Try to maintain a balance and take a professional view of your trade.
4. do not expect that the transaction will necessarily this or that. What you're looking for is a thoughtful consideration of the facts, not a fishing expedition.
5. if your trading method tells you that you should do a deal, and you did not perform, missed a chance to make money, can only do wall, this pain is far greater than you according to their own trading plan into the market to do a deal but finally lost money brought about by the pain.
6. their own life experience to shape your understanding of the transaction. If you do the first transaction on the loss, then you are no longer involved in the market for a long time, even a lifetime and do not touch that trading variety of probability is very high. The psychological impact of losing money and failing to make a trade is greater and longer lasting than the physical pain. If you don't get knocked off your feet by a failed trade, then losing money on a trade will not have such a negative and lasting effect on you.
7. educational experiences play an important role in shaping the way traders view trading. A formal business education can give you an advantage in understanding the general state of the economy and markets, but it does not guarantee that you will make money in the markets. The vast majority of what you learn in a formal college education does not provide you with the specific knowledge you need to be a successful trader. To become a winner in trading, you must learn to perceive those opportunities that most people are blind to, and you must tap into that knowledge that is essential to successful trading.
8. Arrogance and pride that comes from making money can bankrupt you. Making money can be so emotionally charged that it causes one's view of reality to be distorted. The more you make, the better you feel about yourself and the easier it is to be controlled by arrogance. The thrill of making money is what the gambler needs. The gambler is willing to lose money over and over again just for the thrill of making money once.
9. always remember that one person bears the responsibility, win or lose. Don't blame the market or the broker. Losing money provides you with an opportunity to notice exactly what went wrong with the trade. Don't take it personally.
10. Successful traders quantify and analyze risk and truly understand and accept it. Emotional and psychological acceptance of risk determines your mindset in each trade. Individual risk tolerance and trading time preferences also make each trader different. Choose a trading method that reflects your trading preferences and risk tolerance.
11. the market is a collection of psychological momentum of all trading participants. The long and short daily wrestling reflects what the short and long are thinking about every day. Be sure to look at the daily closing price and the day's highs and lows of the relationship, because this shows the market's recent strengths and weaknesses.
12. never just because the price is low on long or high prices on short. Easily don't go to the money-losing single plus code. Never lose patience with the market. Always have the right reasons before you make any trade. Remember, the market is always right.
13. Traders need to listen to the market. To listen to the market effectively, traders need to pay attention to their trading methods, and likewise, pay as much attention to themselves as they do to the charts and the market. The challenge for traders is to understand who they are as a person, and then be determined to consciously cultivate those qualities that will contribute to their trading success.
14. As a trader, the further away you are from hope, greed and fear, the greater your chances of trading success. Why is it that there are hundreds of people who are great at analyzing technical charts, but only a handful of really good traders? The reason is that they need to spend more time on their psychology than on their analytical methods.
15. To do a good job, one must first sharpen one's tools. Abraham Lincoln also said, "If it takes me eight hours to cut down a tree, it will take me six hours to sharpen my axe." In trading, this adage can be interpreted to mean that research and study are very important. The time spent preparing for a trade exceeds the time spent placing and watching orders.
16. Most traders are less patient than the market. There is an old adage that says that the market will do everything it can to make most traders mad. As long as someone is bucking the trend, the market trend will continue.