TRADING PSYCHOLOGY: DON’T CONFUSE WRONG IN LIFE WITH WRONG IN TRADING
Today, we will deviate from our usual talk of a specific technical indicator and discuss trading psychology, something that can be far more important than technical analysis. The topic of trading psychology is a deep and comprehensive one, so today we will quickly touch on the aspect of “losing trades.” Trading is hard enough as it is on a day in and day out basis, and one of the first and most important lessons a trader must learn and accept in order to be successful, is to understand that right and wrong in life are not even remotely the same as right and wrong in trading. Traders need to accept that being wrong in the market is a part of the process as we simply can not be right each and every time we put on a position. If a trader can not accept this principle, than he or she is doomed to fail. However, those traders who understand that losing is a part of the process, are much more inclined to trade with a higher degree of confidence and success. Not being able to accept a loss translates into leaving losing positions open, which translates into a material deterioration in equity. Embrace this principle and I guarantee you will be a better trader for it.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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Joel Kruger publishes 6 daily pieces:
“Tech Talk” – A Daily Video Highlighting Technical Developments in the Overnight Session of Trade.
Monday-Friday (between 5:30am-6:30am EST)
“Morning Slices” – Morning Overview using Fundamental, Technical, Flow, and Quantitative Analysis (Includes “Trade of the Day”).
Monday-Friday (between 6:30am-7:30am EST)
“Indicator of the Day” – A Feature Report that Highlights our Most Significant Technical Indicator of the Day.
Monday-Friday (between 8:00am-9:00am EST)
“Midday Snapshot” – A Midday Fundamental Update, along with Technical Analysis of Selected Rates.
Monday-Friday (between 10:30am-11:30am EST)
“Scandi Daily” – A Specialized Daily Fundamental and Technical Overview of the Nordic Currencies. (This report is only distributed through email. Please contact [email protected] if you would like to be added to distribution.)
Monday-Friday (between 11:30am-12:30pm EST)
“Daily Classical” – A Daily Technical Overview of the Major Currencies.
Monday-Friday (published between 2:00pm-3:00pm EST)