Introduction to Trading Psychology
Learning to read a price chart takes a while, but is relatively straight forward. It is obvious learning how to read a price chart alone is not what leads to consistent profits. So, what is it that separates the very few successful traders from the so many failures? Is it their strategy, their money management skills, IQ, were they born with a different skill set than most, do they work harder than most, or are they just plain lucky? All of this sounds plausible, but are they really the driving factor behind consistent profits? The short answer is no, none of the above. Perhaps we have been looking for the answer in the wrong place all along. In fact, most traders never even consider the possibility that it is their attitude or mental habits which prevent their success. What truly separates the winners from the losers has nothing to do with external factors, but rather what goes on internally while observing and engaging the market, or in other words; a trader's mentality.
Learning to read a price chart takes a while, but is relatively straight forward. It is obvious learning how to read a price chart alone is not what leads to consistent profits. So, what is it that separates the very few successful traders from the so many failures? Is it their strategy, their money management skills, IQ, were they born with a different skill set than most, do they work harder than most, or are they just plain lucky? All of this sounds plausible, but are they really the driving factor behind consistent profits? The short answer is no, none of the above. Perhaps we have been looking for the answer in the wrong place all along. In fact, most traders never even consider the possibility that it is their attitude or mental habits which prevent their success. What truly separates the winners from the losers has nothing to do with external factors, but rather what goes on internally while observing and engaging the market, or in other words; a trader's mentality.
