Trader Psychology

How do Traders think

What many people don’t seem to understand is that Trading is a profession. If you are a Doctor, you have spent years learning to practice your profession well. You can’t just walk in off the street and perform brain surgery even if you’ve read a textbook about it.

Similarly, if you are an Airline Captain, you also have spent many years learning your profession. You can’t just read a book about flying and go to a major airline and get a job as an Airline Captain. If the airline hired you as a Captain, I can’t begin to tell you about the lawsuits that would result if you had an accident.

Similarly, if you are an engineer, you also have spent many years learning your profession. You can’t just start constructing a bridge or a building without extensive training, as the bridge or the building you construct might simply fall apart.

However, the profession of Trading is extremely simple to get started in my friends.

  • A new Trader only needs to have some start up money, sign a few forms to get a Brokerage Trading Account, read a book over the weekend about a trading system that promises fantastic rewards and then they are in business!
  • However, the fantastic returns promised by most of those awesome trading systems seem to never materialize for the Average Trader. The Brokerage Companies say that 90% of those new Average Traders run out of money in their Trading Accounts in their 1st year of Trading.

Albert was using all the latest computer equipment along with all the advanced technical indicators in use by traders at that time, such as: Bollinger Bands, MACD and MACD Histograms, Stochastic (Slow & Fast), Exponential & Simple Moving Averages, Volume & Relative Strength Index.

Professional Traders have found that the most important aspect of making Rewards, in the profession of Trading, is to know what are your Beliefs about yourself and about the market. This knowledge is very difficult to learn in a weekend course.

What are your Beliefs about the market and about yourself?

For example, “Is the market a safe place to invest?” If you say yes, that Belief is correct for you. If you say no, that Belief is correct for you.

Another example, “Can I make money in the market?” If you say no, that Belief is correct for you. If you say yes, that Belief is correct for you.

  • When we trade the markets, the most important thing for a Trader to understand is that you don't trade the markets, you actually trade your Beliefs about the markets.

The experts say Trading Psychology and having the Proper Mental Attitude accounts for almost 95% of your success in Trading.

  • Therefore the Proper Mental Attitude needed to become an Exceptional Trader is rather hard to develop in a four day weekend Trading School.
  • The Proper Mental Attitude can be developed for Trading, but it takes time like any other worthwhile profession.

Are you willing to take the time to become an Exceptional Trader or do you want to go to a four day weekend school to become an Average Trader?