Posted by: joetradingplace | March 23, 2015

Trading Psychology

I have noticed that a lot of traders and articles talk about trading psychology as the most important in trading…some even say its about 90%. I will not say its not important, but i could say that it can be overrated. How can a trader be disciplined and patient to follow a trading method that is losing money? I think trading method is just as important…or even more important that trading psychology…If you have a winning method you can easily be disciplined to follow it because you know you will make money.  You can have all the best discipline and patience in the world, but if you have a method that loses money, you will not be successful.

For new traders, it might take a long time to develop a very good method, but it will all come with experience. A couple of successful traders i know have developed their own methods from experience of watching price action for years. If you trend trade, you will notice that it won’t take you many years to be profitable. Don’t be fooled by system sellers and mentors who claim that they will teach you to trade in a few weeks…they are just after your money. If they were that good at trading they wouldn’t be mentoring or selling systems. Ask for proof of profitable trading before you pay for mentoring (5-10 years trading statements). I am not saying that all mentors are system sellers or dream sellers…they are a few good ones..but VERY FEW. Thats my rant…….

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