TRADING PSYCHOLOGY - THE MIND GAME
Welcome to your world.....(quite literally !)
I will be honest .....anyone can put together a half decent trading Method.....there are many many good systems , patterns and indicators out there and lots of good advice on the basics of Trading Execution, Money Management and everything else on the nuts and bolts of trading. (See my Methodology Web page)
so why do so many Traders with half decent methods still fail all the time ?
THE MIND GAME
Now this area is where it really starts getting hard gang ......we are going touchy feely ! .....we are looking at the mind , emotions , feelings and just about every damn thing that gets you up each day and occupies you 24/7 ....including your dreaming hours ....
so many good traders drop the ball when they need to literally get their head around themselves and start to get their Mind Game together ....
and i hate to say it .....but its generally much harder to perfect this area than the more analytical and process driven "Method" side of Trading.......the "Mind" side has no short cuts ....no magic tickets ......its about self awareness and perception and elevating a lot of softer and more emotional skills that most Traders struggle with.........but unless conquered, the Trader will never achieve the Mastery they desire ....never .....
Mind areas you should consider researching and implementing in your lifestyle :-
Your beliefs about Money and Wealth
We all have "money scripts" in our head that we are subconsciously following. These are deeply ingrained from childhood and can only be accessed by many of the things described further below. Identify them and understand them - it will change your world and make all of your money, wealth and Trading decisions easier and more productive.
Meditate and practice Mindfulness
I am not going to go into the detail here as so many websites will explain this better than i could ever do. These activities performed daily will strengthen and refresh you mentally and give you a more upbeat and relaxed approach to all of lifes challenges - guaranteed !
Eat a healthy diet and do not overeat, exercise regularly, do yoga, moderate alcoholic intake (or stop), do not smoke, Get plenty of Sleep.
Basically all of the things you know you should be doing - DO THEM !
Healthy Body = Healthy Mind (its boring - but true!)
The Law of Attraction
This is a very deep and complex area that incorporates the core origins of Science, Spirituality, and Religion. I would recommend research into this area and apply the teachings to your lifestyle if you feel it will be beneficial to you. Many of the ideas are very practical and can be applied without the spiritual and religious commitments needed for practicing the full levels of the art : -
Other Mindful Trading thoughts
Take full Responsibility for your Trading decisions and losses. Trade sensibly and only trade what you can afford to lose.
Accept that Trading is not a natural activity for the Human Mind. The Human mind must be trained to overcome the fear, greed and other emotions that will be triggered continuously when Trading.
Ensure Trading is just a part of your Life. Other more important things must take priority and Trading time must be managed to ensure a balanced and healthy lifestyle. On your deathbed you will not wish you had traded more !
I am always updating my Mind Game information - feel free to tell me if there is anything else you want mentioned in above.