The world of trading is full of things that work and things that don’t work. To be honest, there are many successful traders who’re also teaching people how to become successful. There are many signals providers who provide winning signals. There are many strategies that work and there are many programs, like webinars and trading rooms which can help other traders to improve significantly. Unfortunately, in spite of these, the percentage of losers still remains above 90%. Why?
I think many underestimate the impact of psychology when it comes to trading.
The impact of psychology should not be underestimated. Because even when you have the right strategy to win a trade without proper control of psychology it can completely ruin everything.
To be honest, there aren’t many strategies that work. Many of these so called successful traders aren’t really that successful themselves, which is why they rely on subscription fees and such instead of trading to make money. Many signal providers are just gambling with your money. For example, zulutraders can trade on a demo with fake money, and when you follow them, they get paid. Let’s be honest, you can’t really mess up following signals. Truth is… not enough good info out there and way too many scammers or self proclaimed gurus!
If you’re having psychological issues, maybe you haven’t defined your risk or your entry/exit plans are too vague.
“The market is designed to fool most of the people most of the time.” -Livermore
Psychology in trading is most definately a factor. Just today I placed a short and pulled out for a small loss because i felt the position was turning. This was not for any reason just a feeling I had which turned out was just a lack of confidence in the system I was using. If I had just left it to hit either the take profit or the stop I would have made 16 pips. I think that a good way to solve this issue is to have confidence in yourself and test your system on a demo account first so when it comes to the real deal the pips will land in your account.