A Strong Trading Mind
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Why Is Day Trading So Difficult?
Posted By: Bennett McDowell
http://www.traderslog.com/trading-difficult/
There are three main reasons why day trading is so difficult:
1)When day trading, trading time is compressed. Losses and wins come at you faster and more often which requires a mature, developed psychology to properly handle that kind of instantaneous feedback in such a short period of time.
2)You must develop the psychology not to be seduced by the open market. Trading must remain emotionless and objective.
3)Your day trading results can be highly impacted by trading at higher time frames and the shorter your time frame, the greater this effect will have on you.
The psychology of day trading requires you to not let a string of losses or wins that occur in a short period of time affect your mental state. A frail ego or mind will not do well in handling the results of immediate trade feedback in such a compressed amount of time. It will be too over whelming and may cause incredible frustration and a feeling of hopelessness. This is why position trading using daily charts is recommend for new traders because it allows them time to absorb trade feedback in a manner they can handle while they get a grasp of their trading results.
The open market can be quite seductive especially to the new trader. Day trading requires that you make trading decisions based on sound judgment and analysis void of emotion. New traders that day trade have a tendency to become seduced by the excitement of the open markets and therefore often become emotional traders acting on impulse rather than sound analysis and judgment.
When comparing day trading to position trading, it is easy to see that position trading requires using higher time frame charts like the sixty minute, daily, weekly, and even in some cases the monthly chart. If you are position trading using a daily chart you don’t have many time frames above you that could impact your trading. Compare this to day trading where many time frame are above you. If you are day trading using a one minute chart for example, you have the three, five, ten, fifteen, thirty, forty five, sixty, daily, and weekly traders above you. As a one minute trader you have many traders above you that can throw off your trading approach no matter how good it is. As a position trader, you may have only the weekly and monthly traders above you who do not trade that often.
The differences between day trading and position trading can be as distinct as the difference between day and night. Your success will all depend on your psychology, trading abilities, skills, and your aptitude. As a new trader you will more than likely need to walk before you run, and believe me, day trading is running!
Posted By: Bennett McDowell
http://www.traderslog.com/trading-difficult/
There are three main reasons why day trading is so difficult:
1)When day trading, trading time is compressed. Losses and wins come at you faster and more often which requires a mature, developed psychology to properly handle that kind of instantaneous feedback in such a short period of time.
2)You must develop the psychology not to be seduced by the open market. Trading must remain emotionless and objective.
3)Your day trading results can be highly impacted by trading at higher time frames and the shorter your time frame, the greater this effect will have on you.
The psychology of day trading requires you to not let a string of losses or wins that occur in a short period of time affect your mental state. A frail ego or mind will not do well in handling the results of immediate trade feedback in such a compressed amount of time. It will be too over whelming and may cause incredible frustration and a feeling of hopelessness. This is why position trading using daily charts is recommend for new traders because it allows them time to absorb trade feedback in a manner they can handle while they get a grasp of their trading results.
The open market can be quite seductive especially to the new trader. Day trading requires that you make trading decisions based on sound judgment and analysis void of emotion. New traders that day trade have a tendency to become seduced by the excitement of the open markets and therefore often become emotional traders acting on impulse rather than sound analysis and judgment.
When comparing day trading to position trading, it is easy to see that position trading requires using higher time frame charts like the sixty minute, daily, weekly, and even in some cases the monthly chart. If you are position trading using a daily chart you don’t have many time frames above you that could impact your trading. Compare this to day trading where many time frame are above you. If you are day trading using a one minute chart for example, you have the three, five, ten, fifteen, thirty, forty five, sixty, daily, and weekly traders above you. As a one minute trader you have many traders above you that can throw off your trading approach no matter how good it is. As a position trader, you may have only the weekly and monthly traders above you who do not trade that often.
The differences between day trading and position trading can be as distinct as the difference between day and night. Your success will all depend on your psychology, trading abilities, skills, and your aptitude. As a new trader you will more than likely need to walk before you run, and believe me, day trading is running!
6 Simple Ways to Construct A Better Trading Mindset
http://eminimind.com/6-ways-to-a-better-trading-mindset/
How to Get Motivated, Right Now!
Achieving a long-term goal can be overwhelming. It all starts with TAKING ACTION! Any action, even the smallest step will propel you forward. Stand up, get off the couch, say to yourself, I can do this and I will do this.
Grab a sheet of paper and start by writing down your goal, then work backwards, listing all the things that need to happen in order to achieve that goal.This will help keep you motivated.
Steps to Building a Financially Secure Lifestyle
Here are 6 things you can do immediately (right now, today) that will contribute to your trading success and help you lead a full-filling life.
1. Build Slowly for the Long-Term
One of the best things I ever did was setup a weekly auto-deposit from my checking account into a separate savings account.Auto-deposits are found to be the single most effective way to build a net worth for retirement.
Keep in mind the interest rate is irrelevant. The goal is to set aside money on a weekly basis that you can then use down the road to fund investment opportunities. Start small; you can increase this amount over time. Trust me, you won’t even notice it’s gone, and after a few months you’ll be smiling.
2. The Advantage of Being a Part-time Trader
If you trade part-time, that’s great. Take advantage of the benefit package at your job and (if it’s offered) contribute the maximum to your pension fund
3. Adopt a Millionaire Mind
Keep a running list of expenses. Take a look at your bank statements as most online banking tools organize your expenses into categories making this process quick and easy.
For any potential purchase of $100 or more wait 1 day and ask yourself, do I really need this item? Many people act rich and spend money frivolously; this is NOT the lifestyle path of true millionaires.
4. Get Rid of Your Cash
If you have lurking credit card balances that’s ok. If you’re paying them down slowly while sitting on cash that’s not okay.
Paying off small credit balances is a great first step in cleaning the slate and climbing out of debt.One or two credit cards is all anyone should need.
5. Turn Compounding Interest In Your Favor
Set it and forget it is not dead. In fact, it’s one of the easiest ways to build your net worth.Don’t spend a lot of time searching for the perfect fund, a basic asset allocation fund will work.Throw some numbers into a compound interest calculator you’ll be amazed at the results.
What is important is that you keep contributing a small amount each week (or month) and do not withdrawal money from the account. Often times what’s so easy to do, is easy NOT to do.
6. Work Less, Earn More
What is your time worth to you? Timothy Ferris explains it perfectly in the 4-Hour Work Week how to work smarter, not harder.Look for ways to streamline your life and make repetitive tasks more efficient.If you divide your hours worked into your yearly salary how much are you really making per hour?
Trading is a career that takes massive amounts of time commitment up front, but as the years go by you become compensated with flexibility and time.
While it may take more than one year to achieve, the concept remains valid. The 4-Hour Work Week is a great book filled with useful ideas you can implement today to work less and earn more.
Here’s Your First Step…
Identify the top 3 things from this list that you feel would have the biggest impact on your life. Pick one and take action.This takes about 10-minutes to do you will see the benefits both immediately AND years down the road.
Why These Actions Will Improve Your Trading
Trading is as much about being in the right frame of mind as it is about executing quality trades. Going through this list and taking the steps mentioned will help bring you closer to the mindset that is required to become a successful trader: calm, objective, and without fear of trading scared money.
The goal is not to quit your job to trade full-time, only to become a slave to 16-hour days and a roller coaster of emotional ups and downs. It’s to build financial security, consistent cash flow and in the end, lead to a fulfilling life.
http://eminimind.com/6-ways-to-a-better-trading-mindset/
How to Get Motivated, Right Now!
Achieving a long-term goal can be overwhelming. It all starts with TAKING ACTION! Any action, even the smallest step will propel you forward. Stand up, get off the couch, say to yourself, I can do this and I will do this.
Grab a sheet of paper and start by writing down your goal, then work backwards, listing all the things that need to happen in order to achieve that goal.This will help keep you motivated.
Steps to Building a Financially Secure Lifestyle
Here are 6 things you can do immediately (right now, today) that will contribute to your trading success and help you lead a full-filling life.
1. Build Slowly for the Long-Term
One of the best things I ever did was setup a weekly auto-deposit from my checking account into a separate savings account.Auto-deposits are found to be the single most effective way to build a net worth for retirement.
Keep in mind the interest rate is irrelevant. The goal is to set aside money on a weekly basis that you can then use down the road to fund investment opportunities. Start small; you can increase this amount over time. Trust me, you won’t even notice it’s gone, and after a few months you’ll be smiling.
2. The Advantage of Being a Part-time Trader
If you trade part-time, that’s great. Take advantage of the benefit package at your job and (if it’s offered) contribute the maximum to your pension fund
3. Adopt a Millionaire Mind
Keep a running list of expenses. Take a look at your bank statements as most online banking tools organize your expenses into categories making this process quick and easy.
For any potential purchase of $100 or more wait 1 day and ask yourself, do I really need this item? Many people act rich and spend money frivolously; this is NOT the lifestyle path of true millionaires.
4. Get Rid of Your Cash
If you have lurking credit card balances that’s ok. If you’re paying them down slowly while sitting on cash that’s not okay.
Paying off small credit balances is a great first step in cleaning the slate and climbing out of debt.One or two credit cards is all anyone should need.
5. Turn Compounding Interest In Your Favor
Set it and forget it is not dead. In fact, it’s one of the easiest ways to build your net worth.Don’t spend a lot of time searching for the perfect fund, a basic asset allocation fund will work.Throw some numbers into a compound interest calculator you’ll be amazed at the results.
What is important is that you keep contributing a small amount each week (or month) and do not withdrawal money from the account. Often times what’s so easy to do, is easy NOT to do.
6. Work Less, Earn More
What is your time worth to you? Timothy Ferris explains it perfectly in the 4-Hour Work Week how to work smarter, not harder.Look for ways to streamline your life and make repetitive tasks more efficient.If you divide your hours worked into your yearly salary how much are you really making per hour?
Trading is a career that takes massive amounts of time commitment up front, but as the years go by you become compensated with flexibility and time.
While it may take more than one year to achieve, the concept remains valid. The 4-Hour Work Week is a great book filled with useful ideas you can implement today to work less and earn more.
Here’s Your First Step…
Identify the top 3 things from this list that you feel would have the biggest impact on your life. Pick one and take action.This takes about 10-minutes to do you will see the benefits both immediately AND years down the road.
Why These Actions Will Improve Your Trading
Trading is as much about being in the right frame of mind as it is about executing quality trades. Going through this list and taking the steps mentioned will help bring you closer to the mindset that is required to become a successful trader: calm, objective, and without fear of trading scared money.
The goal is not to quit your job to trade full-time, only to become a slave to 16-hour days and a roller coaster of emotional ups and downs. It’s to build financial security, consistent cash flow and in the end, lead to a fulfilling life.
All Trading skills are learnable
By Nial Fuller
http://www.learntotradethemarket.com/blog/unlock-full-trading-potential
It’s important to understand that all trading skills are learnable. Some of the mental skills that a successful trader must possess are easier for some people to develop than others, but if you want it bad enough you can develop them. I am not saying that becoming a successful trader is necessarily ‘easy’, but nothing that’s worth while in life is. You should take comfort in the fact that the only real obstacle blocking your path to trading success is YOU. Once you accept this and start doing the things you need to do to overcome it, you will be well on your way to unlocking your full trading potential.
The first big step to unlocking your full trading potential is emulating successful traders and learning the type of trading methods that they use and trying to get a feel for how they think about and trade the market. Price action trading is something that every successful trader understands and uses either as their main strategy or as part of their strategy, it is an essential component to any successful trader’s trading method.
If you’re still lost in ‘indicator land’ and dreaming about some “Holy Grail” trading system, you are about as far away from consistently profitable trading as you can be. To truly unlock your full trading potential, you need to come down to reality and learn how professionals trade the market with price action strategies
By Nial Fuller
http://www.learntotradethemarket.com/blog/unlock-full-trading-potential
It’s important to understand that all trading skills are learnable. Some of the mental skills that a successful trader must possess are easier for some people to develop than others, but if you want it bad enough you can develop them. I am not saying that becoming a successful trader is necessarily ‘easy’, but nothing that’s worth while in life is. You should take comfort in the fact that the only real obstacle blocking your path to trading success is YOU. Once you accept this and start doing the things you need to do to overcome it, you will be well on your way to unlocking your full trading potential.
The first big step to unlocking your full trading potential is emulating successful traders and learning the type of trading methods that they use and trying to get a feel for how they think about and trade the market. Price action trading is something that every successful trader understands and uses either as their main strategy or as part of their strategy, it is an essential component to any successful trader’s trading method.
If you’re still lost in ‘indicator land’ and dreaming about some “Holy Grail” trading system, you are about as far away from consistently profitable trading as you can be. To truly unlock your full trading potential, you need to come down to reality and learn how professionals trade the market with price action strategies
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