Trading is not only about indicators and charts. There is another subject which according to Dr. Van K. Tharp is even more important; trading psychology which consists of many emotions, disciplines and creating stong mindsets.
Use Trading Psychology to Develop the Discipline you Need to Become a Successful Trader
Dr. Van K. Tharp believes that trading is 75% mental and 25 % technical. We at Stock-Market-Strategy agree that trading psychology is a very important subject however measuring the percentile is a bit difficult.
Nevertheless we tell every trader we mentor that trading psychology is the single biggest reason for failure. Therefore read our section about trading psychology and revisit it a few times as you are sure to discover new things when re-reading it.
Visit our section on Trading Discipline to find out how this can impact on your ability to trade. Lack of discipline is one of the biggest reasons for failure rate in trading so understand what we mean by discipline and how it relates to the stock market.
If you can understand that Human Emotions play a big role in trading, then you can successfully implement one key discipline that is not always considered. Read this section to see some of the most common emotions in trading including anger, fear and greed.
A subject that often goes unnoticed until you have accrued big loses and felt huge frustration is the Mindset you experience when executing trades. This is such a massive part of your stock market education! We believe trading is 75 % mindset and the rest is using a trading system, such as technical analysis and fundamental analysis so read up on how this mindset could affect you.