Wednesday, 26 November 2008

Hi Trader,

Welcome to the Learn To Trade Markets Mini Course - Day #5.

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What about YOU…?

This part of your mini course addresses what you most probably see as the ‘intangible’ part of trading. Markets are made up of millions of human beings, who after all, are only human and have limited abilities. Strange things happen to us all when we move from the structured environment of normal life into the unstructured world of trading.

The problem is compounded because cash is at stake - a highly emotive instrument. But it’s not just any old pile of cash, it is money you have aquired from your own sweat and blood.

For you to trade well you must understand more about who you are as a person. Trading is said to be 20% technical and 80% psychological and in my experience this is true. This should therefore highlight how important your own psychology will become in achieving large degrees of success.

To trade well, you must first understand how and why traders fail. You must then ‘unlearn’ each of those behaviors (which you are almost certainty already doing) and replace them with new behavior which leads you in the right direction.

There are more but the following are the most common and damaging behavioral traits which will move you in exactly the wrong direction:

1. Overtrading - trading too much is a common trait particularly among beginners. 2. Failure to take winners - greed can be a nasty thing and prevents you from taking cash to the bank. 3. Holding onto losers - the inability to accept you were wrong. 4. Picking tops and bottoms - The belief you can consistently call market turning points. 5. Intuition - Novice traders believing they can rely on a gut feeling.

If you recognize any of these behaviors in your own trading, you can be sure they are dragging down your performance. I will show you several exercises you can perform to recognize, remove and eliminate the effect of each of these behaviours.

Dealing With Emotions In Trading

When trading, at times emotion runs in excess. You will experience extreme frustration, irritability and bouts of depression and another time ecstasy and euphoria which will lead to you taking much higher degrees of risk than you can handle.

Other times you will experience moments of confusion, conflict and indecision which may cause you to freeze and fail to act in your own best interests when you should.

Most traders find themselves oscillating between these 2 extremes of behaviour and often act in exactly the wrong way.

In between these 2 extremes is the master trader. Master traders have no ego or emotional high and low points. Decisions are made based on what the market is communicating instead of the emotional drive of the individuals psychology.

A master trader has an immense amount of control and confidence to maintain his market approach irrespective of what happens in the market or any drawdown periods. If the market tells him he is wrong he will get out.

Trader, your belief systems have been ingrained deeply into your subconscious psyche from the very day you were born right up to today and they die hard. To trade successfully you will have to question and probe some of your deepest rooted concepts of what is possible. In essence you will have to overcome your past before you can build a successful trading future.

In Part Five of Learn To Trade Markets, I show you how you can blast away your past programming which is limiting your returns and how to adapt to the inherent uncertainty in the market. I teach you about each of the emotions you will experience (there are far more than just fear and greed), the damage they can cause to your trading and how you can rise above them in a way which will propel you towards becoming a trading master.

I reveal several unknown techniques for effecting changes that will cause a dramatic improvement in the way you trade and the returns you see from your trading. These techniques are unknown because I invented them, tuned them and wound up their power to bring maximum results to you in the minimum time possible.

Perhaps the greatest gem in this whole section is the highly effective method I use to build your discipline to iron-clad strength. This is the cornerstone of your future as a trader and as such is a priceless exercise.

Tomorrow, in the final day of your 6 day mini-course, I will be talking about how you can move from trading success to trading excellence. And it’s much easier than you might think…

Trader, until tomorrow…

Sincerely Karl Richards www.Learn-Market-Trading.com

P.S. To order Learn To Trade Markets now, visit: http://www.learn-market-trading.com/learn/trade-.p hp AOL Users