Being Mentally Prepared

"The enemy is not the market, or your broker, or even the other traders out there. It's you!"

Your emotions play a key role to your success, in learning to try to earn a good second income by trading the markets. If you let them run rampant, the 'triplets' within you, fear, greed and need, will be your nemesis in this business. They will eat away at your trading account like a cancer until there is nothing left.

The fear of loss, the desire to maximize your profits and the need to feed your ego with success, are within us all. You, however, do have a choice. To either kennel them and keep them on a short leash or let them drag you from one end of your account to the other.

Does that sound too dramatic?

Well not to the vast majority of 'wannabe' traders after they fail. Most learn the lesson long after they have missed the chance of a comeback. CONSIDER YOURSELF FOREWARNED!

In this article we try to offer you some insight and knowledge that have been learnt over many years of trading. Quite simply, trading is a bit like flying, in that it is a whole lot easier to take off than it is to land. Also when trading, it is a whole lot easier to recognise when to enter a trade than it is to recognise the appropriate exit for you!

The three biggest mistakes you can probably make are:

• Entering a trade too early or too late;
• Exiting a trade too early or too late; and
• Trading far too often!

Here is a sobering thought. The average novice trader burns through his or her account very quickly. It is not that they are uneducated or stupid. It is that they either do not have, or choose not to follow, a trading plan or strategy. Remember, plan your trade, trade your plan.

One of the first things we encourage people to do is set up a personal trading plan. We are all different so we do not offer a 'canned' plan like some 'training' organisations do.

To find out more about the Psychology of trading why not visit www.tradingknowledge.info

The information in this article is for educational purposes only, it does not constitute advice and should not be construed as solicitations of any order to buy or sell. Past results are not necessarily indicative of future results.