Hello Trader,

The Importance of Trading Psychology

Part 1

Why is trading psychology so important?

Trading psychology is so important because trading can be a very emotional business. As we all know if trading did not have it’s challenges everyone who traded would be rich.

Trading psychology is so important because there is so much emotion in many of us that is linked to money. We also know that many of us who enter into the trading arena fail.

Why is that?

There are numerous reasons why a large percentage of traders fail. The main reason has been cited as lack of discipline. Discipline is defined as, orderly or prescribed conduct or pattern of behavior, or, a rule or system of rules governing the conduct or activity.

If you are thinking that inadequate working capital is also a reason for trading failure you would be right as well. Actually, I put this in with trading discipline. Traders who start with inadequate working capital often lack the discipline to fund their accounts with an adequate amount of capital.

You’ll receive Part 2 of Trading Psychology in a few days… Until then…

Good Trading and Good Life!

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