subject: Psychology - How To Trim Down Negative Sentiments Linking To Stock Trading By Supernsetips [print this page] The thinking process of the brain relating to the psychology of trading involves:
The positive or negative energy fetches power to a person's activeness's, which ultimately determines whether a person is a winner or a loser. You can alter for the honorable or for the speculative. The old saying goes: For as a man thinks in his heart so he is.
-- Trading is the most hard money making science to master, because the market plays the aspects of people and life.
It is necessary to scratch the surface and explain what psychology means and how it relates to trading. Without doing so, you will not understand why this element is important to your trading plan. The psychology aspects of people are divided into two categories:
1. Believers (the first category) who support the belief that something in the realms of other dimensions in the universe exist and. 2. Non-believers (the second category) who are convinced that reality is the only dimension of life.
It is (the first category) that usually uses both sides of the brain to think and has access to a third component of the brain (faith) that is dead when the person is born. (The second category) only uses a little portion of the brain's power. While (the second category) may or may not use both side of the brain to function, the third part of the brain (faith) is wholly dead and non-active.
See, the psychology of the brain is separated into three separate parts:
1. Faith. 2. The thinking factor and. 3. The emotional part.
If the thought, (focusing on the power of positive thinking), division of the brain controls the emotions, the individual maintains and builds up discipline. If the emotions run the thinking part of the brain, the human being lives in a pure state of extreme confusion and disorder. This is why the answer to success understands how the right forms of discipline work - without it you will lose your shirt in the market. Discipline in the following three areas of trading will ultimately determine your trading success.
* Training -- The successful trader never rests on past successes, or believes that his trading ability has peaked. He is always studying and practicing his decision-making skills, honing them until they become second nature. Then he can react faster than a speeding bullet, but with the welfare of superior human judgment.
* Trading Rules -- The successful trader develops set of trading rules - a plan - that he follows faithfully. This guides his decision-making at all times. If a trader's plan dictates that it is time to exit a stock, the trader will exit that trade and not wait a minute longer.
* Self Control -- Successful traders display an extraordinary amount of self control. Keeping emotions constantly in check, the disciplined trader is resistant to the highs and lows that attend big market swings - whether scare, in a downturn, or of euphoria. I will show you how to learn the secrets of discipline.
Can You Learn Discipline?
The big question here is whether you can develop the discipline you do not have naturally. I believe the answer is "yes, you can," but you must have the necessary commitment to do so. Ultimately, ungoverned behavior is going to be punished by the market. Private traders who persevere and master self discipline, have external stimuli that will help the process. However, the market does not help as much as it might, because of the principle of random reinforcement. It is the market's tendency to reward bad behavior from time to time. This crucial fact is one of the reasons why it takes so long to learn how to trade. You need to realize this: there is no point in having a system if you are not going to follow it. Follow and evolve a routine of self-discipline and you will be successful in your trading speculations.
