Archives of “unconscious mind” tag

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Acting On Impulse

  
  Education
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Why do so many traders abandon their trading plan? Is it their personality, an inherent pitfall of the trading profession, or temporary insanity? A host of factors may contribute to a lack of discipline. Depending on your personality, background, training, and experience with the markets, you may have trouble reigning in your tendency to act on impulse.

For some people, impulsivity is in their nature. They have trouble focusing their attention. They are easily bored. Seeking out quick thrills relieves the tedium of life. For others, impulsivity is related to emotionality. Some people have so much trouble controlling their emotions that they react impulsively out of frustration. Minor setbacks are inevitable in the trading arena. When the extremely emotional trader encounters one of these setbacks, he or she becomes overly agitated, and may close a position early, or in a fit of confusion, make a major trading blunder that can only be remedied by closing the position.

That said, any trader can act impulsively at times. There are many situational factors that contribute to impulsivity. Research has shown, for example, that when people are tired, they have difficulty focusing their attention. As much as part of your conscious mind cares about sticking with your trading plan, your unconscious mind thinks, “Who cares? I want to take a break.” Psychological resources are limited. When you push yourself to the limits, you will have trouble focusing on your ongoing experience, concentrating on your trading plan, and sticking to it. (more…)

10 Obstacles to Success for Traders

  
  Education
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1        Greed, the urge to make as much money as possible, and fear that he will lose it all.

2        Low confidence in himself or his strategy, which makes him enter or exit trades at the wrong time. Low self esteem is also a problem; lots of people are natural victims and believe that they will probably fail, and of course this is what they do.

3        Middle class guilt that makes the trader believe that he should not make super profits because it is morally wrong.

4        Overconfidence. Feeling that after so many winning trades he is invincible.

5        Disbelief. He believes that high rewards cannot possibly be true, and “If trading is that easy, then everyone would be doing it.” He then looks for complicated strategies in the belief that it cannot be easy.

6        Paranoia, believing that the market is conspiring against him.

7        Reward for effort, where he feels that people should be rewarded fairly for the effort that they put in. FX trading does not operate with these rules and that is confusing. The reward can be disproportionately high or can result in punishing losses, and is not dependent on just the work put in.

8        Insecurity, resulting in changing a strategy that is actually winning. All strategies must be tested and then consistently applied in order to engender confidence.

9        The urge to trade simply because he is a trader. This impatience results in entering trades when no real opportunity exists.

10   Low expectation; people with a low expectation of life tend to be less successful. Even though they may be highly intelligent, they aim for less and settle for less. (more…)

3 Steps For Traders

  
  Education
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So – are you ready?

Are you ready to unlock the greatness that you have within you to succeed as a trader?

Are you doubting that you have what it takes to succeed in the world of trading?

Well, we all have the same ability to succeed, you just have to know how to tap into it. Firstly, you need to understand a little about how you have ended up in the situation you are in now.

….. and let’s assume you are not where you really want to be, right?

Let’s get right to the point and identify what 3 things are influencing EVERYTHING in your life and giving you the results you currently have. (more…)

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