The right state of mind for trading

A lot has to be said for the psychological aspect of trading successfully. Mark Douglas in his book Trading in the Zone, puts forwards 5 truths about the market. Rewiring the mind to believe wholly these 5 truths is the way to go to obtain the best psychological frame of mind to trade successfully.

1. Anything can happen
2. Every moment is unique
3. You don't need to know anything about what is going to happen next in order to be in a winning trade.
4. An Edge is nothing more than a higher probability of one thing happening over another
5. There is a random distribution between wins and losses and any given set of variables that define an edge

4 Stages a Trader goes through

4 Pillars of Trading Psychology

According to H Senters, there are 4 pillars to Trading Psychology

Some tips for novice traders from J Carter, author of Mastering the Trade.

Tips for novice traders

• Trading is simple but is not easy
• Trading should be boring, like factory work
• Be aware of your own emotions
• The market always reinforces bad habits
• Don't focus on the money, focus on executing trades.