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Understanding Trading Psychology Visit MarketGeeks.com
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Biggest Piece Of The Trading Puzzle Trading Psychology
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Your Mind Records Past Experiences Start out losing money in the markets
The mind begins to associate the financial market with negative emotions This causes variety of reactions in most people ranging from headaches to severe panic attacks Avoidance Behavior Copyright Š 2007-2013 Market Geeks, LLC. All Rights Reserved.
Similar To A Traumatic Experience
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You Deal With This Head On You have to make yourself see the market objectively just like you did before you started trading You must reprogram your mind to see the market as neutral without any hidden agendas or negative motives
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2 Ways To Deal With The Problem Limit your risk to fraction of your current size
Do not avoid markets Trade to gain confidence not to make money
Positive exposure is the key With time your mind will change how you think about the financial markets Copyright Š 2007-2013 Market Geeks, LLC. All Rights Reserved.
Basic Human Psychology Our society conditions people so that when they get the right answer they know they are doing something right and when they get the wrong answer they are conditioned to believe that they are doing something wrong
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Principle Does Not Work In Trading The mind believes that by holding on to a losing position there is a chance that the position could come back If the position comes back then the traders obviously made the correct decision and therefore he is a good trader Conversely, when traders are in a winning position they quickly take profits so that they can feel like they made the correct decision
Notice That Being Right Is The Major Concern Copyright Š 2007-2013 Market Geeks, LLC. All Rights Reserved.
Being Right And Making Money Profitable trading is based on risking winners so that they become bigger and liquidating losers quickly so that they don't become bigger Beginners cut winners so they don’t turn into losers and risk losers so that they potentially turn into winners Do You See The Difference Between The Two Paragraphs
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Things To Keep In Mind Psychology Can Be The Biggest Barrier
Identify The Problem Take Steps Necessary To Solve This Problem
Psychology Does Not Improve By Itself We Can Help!
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Understanding Trading Psychology Visit MarketGeeks.com Download Free Trading Report Subscribe To Our Channel
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