Trading Psychology

| Total Words: 1203

This is a topic that is crucial and vitally important to trading.

Its a Market of Emotions and 90% of all trading is based on psychology!

Thats a fact just like it is a fact that 90% of all traders who ever trade lose money and that 10% actually make a total loss going bankrupt. If the first number doesn’t set off your alarm bells then the second definitely should.

But why is it then that such a large number of traders get driven by psychology and fail? Intelligent people with a high level of education watch their trading accounts erode taking one loss after the other.

So why do traders fail?

Without Education And an Understanding of The Psychology of The Market Your Chances of Profitable Trading are Profoundly Limited!

While the trading instruments that make up the market have no emotions, the individuals that trade those instruments are human beings and are very emotional by nature. Realizing that the human emotions of fear and greed often drive prices up and down, allows one to begin to understand how to position oneself on the right side of the market. Because humans are very emotional, they often make rash decisions that end...

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