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Mastering Yourself

If we had a crystal ball, trading would just be a matter of buying at a bottom, holding the stock as the price continued to rise, and selling near a top, right before the public sells in a state of panic. But we don't have a crystal ball, and there is no foolproof way to forecast the markets. Sure, if you have enough capital, are willing to wait long enough for a stock price to increase, and will be satisfied with a small profit, you can identify a few key stocks that will pay off handsomely with a buy-and-hold strategy. But that isn't what you're looking for. If you are like most traders, you are trying to capitalize on short-term moves to make big gains over and over again, and in the long run, mount a series of impressive wins. To accomplish this goal, you need to control your impulses and emotions. You need to cultivate enough energy to study the markets and search for profitable setups. But the work doesn't end there. You also need to execute your trading plan with smoothness and agility.

A cursory review of history reveals a host of people who have fallen victim to self-sabotage. They range from presidents Ulysses S. Grant to Bill Clinton, from Charles M. Schwab of U.S. Steel to Dennis Kozlowski of Tyco International. These individuals rose from humble beginnings to accumulate wealth, fame, and power. Yet in the end, they took extreme risks and paid a steep price. Upon hearing their stories, it's tempting to think they had a motive for self-sabotage, a hidden demon ready to undermine all that they had accomplished.

Most of the articles in Chart Scan are about gaining a mental edge, and when you trade with a mental edge, you increase your odds of winning. This sentiment is expressed by the many trading experts. By understanding your motives and setting goals, as well as consciously controlling your state of mind, you can manage anxieties, focus concentration, and enhance our confidence as traders. In addition, by using specific psychological skills you can greatly improve your performance. These skills will increase your level of personal enjoyment and fulfillment.

At Trading Educators, we try to bring you knowledge from our own journey through life as a trader. We would like this opportunity to thank you for reading, and allowing us to help you master the markets and be the best trader that you can be. If you set realistic goals, work hard to gain market experience, and manage your mental state, you will be one of the few who become a winning trader.



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Saturday, 22 June 2024

Derivative transactions, including futures, are complex and carry a high degree of risk. They are intended for sophisticated investors and are not suitable for everyone. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results, and all of which can adversely affect actual trading results. For more information, see the Risk Disclosure Statement for Futures and Options.