Trading is a performance arena and success is a result of using inborn abilities (talents) and acquired competencies (skills), and a perfect emotional self-control can’t on itself turn someone into a successful trader. But if that someone possesses the necessary talents and skills for success, then psychological factors become crucial, however, they cannot replace those talents and skills.
The goal of trading psychology is not just about increasing discipline and reducing emotions. Its goal is to enhance concentration and focus enabling you to act with sustained drive and stay deep-rooted in your goals.
Yes, emotional flame can affect concentration and performance, but that doesn’t mean that success in trading is guaranteed to those whose emotions are well-balanced. Maybe they will not blow away their account like those who make decisions on a burning head but that doesn’t mean they will become super successful. There are successful traders who have a highly analytic mind and aren’t emotional at all. But there are also traders that are highly emotional but still very competitive and successful.
Strong concentration and focus are the most important factors that activate the executive center of the brain that is responsible for planning, reasoning and judgment. If that center is passive you become like a person who has an Attention Deficit Disorder with wandering attention and reduced self-control that result in impulsive behavior.
All these make people think that emotions and lack of self-discipline are to blame for trading problems, but actually they are not the causes but the results of the problem (weak concentration and focus).
Trading psychology assumes that for being successful you should build consciousness and train your mind that will result in better self-confidence, self-discipline and balanced emotions thus lowering the high levels of stress and frustration.
If you neglect the state of high consciousness, even the best trading strategies and systems will bring you average results (the best case) and losses (the worst case).
The goal of trading psychology is not just about increasing discipline and reducing emotions. Its goal is to enhance concentration and focus enabling you to act with sustained drive and stay deep-rooted in your goals.
Yes, emotional flame can affect concentration and performance, but that doesn’t mean that success in trading is guaranteed to those whose emotions are well-balanced. Maybe they will not blow away their account like those who make decisions on a burning head but that doesn’t mean they will become super successful. There are successful traders who have a highly analytic mind and aren’t emotional at all. But there are also traders that are highly emotional but still very competitive and successful.
Strong concentration and focus are the most important factors that activate the executive center of the brain that is responsible for planning, reasoning and judgment. If that center is passive you become like a person who has an Attention Deficit Disorder with wandering attention and reduced self-control that result in impulsive behavior.
All these make people think that emotions and lack of self-discipline are to blame for trading problems, but actually they are not the causes but the results of the problem (weak concentration and focus).
Trading psychology assumes that for being successful you should build consciousness and train your mind that will result in better self-confidence, self-discipline and balanced emotions thus lowering the high levels of stress and frustration.
If you neglect the state of high consciousness, even the best trading strategies and systems will bring you average results (the best case) and losses (the worst case).