Tuesday September 6, 2016 - 12:21:38 GMT
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Equitimax Reviews - Psychology of Forex Trading
Do you know who your trading enemy is, most people do not realise that they are themselves, the greatest risk to their own financial success.
Does a persons psychological experiences affect the way they behave as a trader? Equitimax reviews how psychology is critical to trading successfully.
Psychology is the study of the mind, especially the unique behaviours that arise out of the information, beliefs, opinions and certainties that we have developed over the years based on our direct experiences and also our perceived experiences and the opinions of other trusted experts, like mum and dad, school teachers, bosses, peers, TV experts and authors we read. In fact if we were to deliberately go and pick one of our opinions and we researched it enough we could come up with many counter arguments and facts that may make us doubt our opinions and change the way we think about a specific topic.
Just think then if that is the case we could actually take one of your opinions and by developing the right argument or constructing the facts in the correct way we could actually turn your ideas and change your opinion around so you had the complete opposite opinion than the one you started with.
That could be a great skill and a fantastic process to adopt, if your opinions are costing you money because what you actually have as supporting evidence for your opinions and beliefs could be completely wrong or wrong enough that that misinformation is a threat to your trading success. OK. So if I have opinions that are not particularly good from a trading perspective and I now know I could alter those opinions does that automatically mean I am going to follow through and actually make changes, change my opinion, come from another angle, improve my thinking?
NO. Most people do not like to alter their opinions as they have spent a long time cultivating these by carefully sifting through life’s constant stream of information to find the pieces of the puzzle that actually back up and confirm your opinions, this must be true because this confirms it, my opinions are actually true, AH there you go I knew I was right because…
Opinions, Beliefs and Certainties Opinions are easy to change with a bit of careful planning and the correct environment but The core beliefs we are living with are not developed in one day they are built and reinforced over many years and the strength of those beliefs will be based on how many reinforcing principles, experiences and examples we can draw on to support our ‘Theory of the world’.
Beliefs are opinions that are solid and are now central to whom you actually are. Certainties are like solid beliefs that we would place our life on the line for, so some opinions become beliefs and morph themselves into certainties, certainties are quiet difficult to alter as they are usually the core pillars of your personality and belief system and you would be a totally different person without them.
Psychology and trading When you think about it carefully, it is your personal interpretation of all aspects of the world that is focused on one thing, ‘The Trade’ that is going to make, create, develop or generate the profit for you.
If you are a nervous or conservative thinker you may well choke the life out of trading by concentrating what is at risk rather than what is available, you may miss many setups because it just was not right and the glass is half empty type of approach here, could stop you entering a series of well thought out trades.
These trades may have had good set up conditions, but the actual entry point was a little lower or higher than you feel is best. Maybe the pattern was just not right, nearly but not quite right, so you then fail to put the trade on. You then will of course beat yourself up for missing a great trade….again..this approach may mean you are too inflexible and have such a rigid entry criteria that the system does not trigger often enough to make it viable.
This is a psychological bias or belief, the law of always being right. If you are to gung ho and are totally without fear of failure of fear of loss you may well put yourself in positions where you will lose a large chunk of change out of your account and then the fight back can be too tough…one example is to work out what your fears are and if they are not making enough money each day and losing does not come into your basic brain function be wary, in fact take a walk to the nearest mirror in the house and take a long look at the man or woman staring back at you, and remember their face, not hard is it, remember that that person in the mirror is the person who is going to do the most damage to your financial freedom, and is more than likely from any other person on the planet to cause you financial pain. Scary thought isn’t it that of every single person on the planet there is one whom you should fear the most and it is the one you know the best. Or do you.
Have you ever considered taking a long hard look at the person who is in control of your decision making and trading management? Are they experienced, do they start things and lose interest, do they get fed up and start to push trades or gamble on results, would they double up out of frustration when they have had a bad result?
Do you know who your trading enemy is, most people do not realise that they are themselves, the greatest risk to their own financial success. Most people have never even considered the possibility that it is their fault that the system or strategy they are using now does not work. It could be you or it could be the strategy, it could be your own underlying beliefs which will conflict with your conscious mind to completely wreck your good intentions. Developing a new mental toughness is the key to being successful. Spend time reviewing and evaluating certain aspects of your personality and beliefs, to help you develop a new trading you, you can improve your trading muscle by getting yourself to actually lift some trading barbells and weights, not physical weights but mental weights, barriers and opinions.
By applying some small changes to your trading day and by setting some simple goals and taking action on these goals whilst reinforcing your mental exercise program which will improve your trading skill set. You the trader will improve as a trader once you have visited the psychological aspects of trading and improved certain areas, any improvement irrelevant of how small will make you a better more confident trader.
The upside of giving attention to this aspect of your trading is you then give it focus, if you give it focus and attention then you are giving it energy, the laws of physics state that anything that is given attention, focus and energy will thrive. Equitimax reviews that this psychological approach to trading will make you a better trader by giving attention, focus and energy to your trading, and the business of trading.
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