Psychology Of Trading. Parts that Make the Whole... or Not.
The psychological aspect of trading is usually underestimated by those new to trading.
The psychological problem for most traders is the fear of losing - ironically it is this fear that causes most traders to lose money in the long run. The fear of losing can manifest itself in a number of ways:Unable to pull the trigger and enter a trade. A trader can start to lose faith in a system that has produced a number of consecutive losing trades and might start to look for further confirmation before taking the next trade. Inevitably the trade that is not taken will be the winner. The point of a mechanical trading system is that it forces the trader to take the trades that they wouldn't normally take just by looking at a chart.
Unwilling to accept a losing trade and cut a losing position short. Losing trades are an inevitable part of trading, many successful systems will produce more than 50% losing trades. The key is to never marry a position - if it hits your stop loss then exit it. Preserve your capital for the next trade.
Taking a profit too early to prevent a winning position become a losing one.
There are a number of ways to counteract the fear of losing:
Have a plan. Never enter a trade on a hunch, tip or gut feeling. Always know your exit before you enter a trade.
Discipline. Developing your own trading plan that you believe in will make it much easier to follow than trying to trade someone else's.
Money Management. If a position is too large for your account size then you are more likely to hang on to the losers or cut the winners short. Each trade is merely one step along a very long journey. Strict money management rules should ensure that you never stake more than you are comfortable with.
Ignore the money. Don't view your trading account as money, view it as points. The better your trading plan and your execution the more points you will accumulate as a reward. It is difficult to trade objectively if all you can think of is that your last losing trade could have paid for a two week holiday or bought you the latest camcorder!
Tim Wreford runs Online Futures Trading, a website that provides information and resources for traders.
Tim also provides a free day trading system, the results of which are updated daily on the site.
Article Source: http://EzineArticles.com/
There are many parts that make up you.
There's the Musical You, the Friendly You, the Amazing You, the Genius You, the Calm You, the Peaceful You, and many more parts that make up who you are - much like an identity check list:
All round good guy/gal part - check
Uniquely amazing you part - check
Witty and intelligent part - check
Lovable and charming part - check
Moody and indecisive part - who me??? Never?
Selfish and greedy part - not me! Never?
Self opinionated - Nope, not me! Never?
We all have wonderful attributes; we also have parts not so wonderful which we'd rather keep hidden but really, it's okay to acknowledge we have both. There's a part of me that's greedy. I can be greedy and thirsty for knowledge. On the flip side I will give away this knowledge to others. In a nutshell, there's a part of me that really wants it and another part that gives it away.
Sometimes we have infighting between parts because one wants to do one thing and the other part wants to do the opposite, much like a tug of war. An example is when you hear yourself or someone else say "A part of me would really love to move on but then again a part of me would rather I stay" or "There's a part of me that loves what money can bring but there's another part that says it's not important".
Eventually we can become indecisive, apathetic, confused or frustrated, to name a few. If a win/win negotiation becomes lose/lose our parts will slowly begin to separate from our true self.
Imagine for a moment a plump juicy, untouched mandarin. With the mandarin's segments still deliciously intact and protected by its shiny, orange outer skin, it's whole. Now imagine that these segments are the mandarin's parts or aspects if you like. Once peeled and a segment is broken off it then becomes separate from its original form. Very much like our parts when they separate. The difference is we can reclaim ours - the mandarin simply gets eaten.
Something Fun to Do
If you've haven't given much thought to how many sides of you there are, maybe you'd like to try the following exercise. You can do this as a group or as something private and only for you.
Here's what you do:
*Pencil in approximately one hour of &Me Time' in your diary for the weekend, a day off, or after working hours and find yourself an area where you'll be undisturbed.
*Get some A4 coloured sheets of paper, coloured pencils/textas/crayons, scissors, glue, and a large sheet of white card paper, and anything else you might like to include.
*Get into the Zone by spending some time in quiet contemplation before you start.
*When you're ready - write on your coloured sheets of paper the parts of you that you discover.
Some examples might be:
Busy Me! Genius Me! Loud Me! Considerate Me! Hormonal Me! Selfish Me! Masculine/Feminine Me! Creative Me! The Sex Goddess/God Me! Wicked Me!
*
Cut out all the different parts and glue to your large card paper - you might like to add stories to it, favourite quotations and anything you believe is relevant to you.
*When you've completed this exercise, step back and notice how truly unique you are.
Michaela is a graduate of a well known parapsychology academy in Sydney Australia, and is a highly-regarded professional within this field. She is also a Transformational Coach, certified practitioner of Neuro-Linguistic Programming (NLP), and writer who is totally committed to helping others create positive and action oriented changes to their lives. High on Michaela's list of passions is her Meditation and the Clarity and Balance programs. It's from designing and delivering these programs and her inner need to express herself through the written word, and the practise of meditation that Michaela has now decided to share with others, her many meditations she's written for her programs by means of her Meditation Script books.
Michaela is also the author and publisher of a monthly e-newsletter called From My Desk.
Married to David, Michaela has two children, Kristen and Aaron, and a grandchild called Matthew. Michaela and her family currently live in Brisbane Australia.
Article Source: http://EzineArticles.com/
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