Posted by millionaire | Sunday, July 08, 2007 | | 0 comments »

Hello all,This is my first post. I've been reading Trading Psychology with much interest but I haven't been able to participate due to issues with my login. Now that it's rectified, I'm glad to be able to share some of my thoughts on a subject that is so important.Yes, discipline is of critical importance and is the key to successful trading. Without discipline trading is just gambling, and gambling, in the long term, is a no-wiin proposition; you will lose. Consider this: TRADING IS PSYCHOLOGICAL WARFAREChances are you have felt the pain and anguish associated with getting trade results that you don’t want. You’ve probably lost money, you’ve seen trades that seemed perfect blow up in your face; and you've watched your portfolios shrink like serran wrap on a hot stove. Well, trading is not for emotional dummies, it is psychological warfare. You may think that the market forces are against you, and that you are doing battle with other traders; well to some extent that is true, trading is a zero sum game and for every winner there is a loser. Every year hundreds, perhaps thousands fall by the wayside because smart traders have taken their money – in some cases all of their money. But they are not who you must be wary of. The bottom line is that you’ve got to do battle with, and over come, “you” first. Trading in the financial markets is arguably the single most challenging business venture on which one can embark. Not because it offers the possibility of large gains and losses. No, what separates trading from other forms of business, is that at each moment of choice, each decision while in the trade involves immediate gain or loss and therefore pleasure or pain. This prospect for most people ignites either fear or greed depending upon which side of the order flow you're on. And why such an extreme case of emotions? The answer is, because we’re talking about MONEY.

Read more at http://www.elliottician.com/forum/showthread.php?t=79

0 comments