Impulse Trading and Psychology

Discussion in 'Psychology' started by gwb333, May 31, 2004.

  1. gwb333


    Mental Impulse Trading

    What is commonly described as emotional trading could be described as mental impulse trading.

    Inside a traders mind he keeps a collection of his uninspected worst fears and vague hopes. A perfect woman and a perfect trade. An overbearing parent or schoolyard bully and abuse he may have known. Failure to yet succeed at his most cherished endeavor. A friend who went bad and he could not help or save from a disaster.

    Pressing needs or frivolous luxury desired alike torture his vision of what he should do next and cloud his judgments.

    A million more like him press their past history on a marketplace of dreams and one of glory and utter despair.

    Is it any wonder that there is a market din? Does this market behave as a rational man would expect and a prudent man would act? Who is in charge of such a babble and what are "they" doing that places them in charge?

    The man or woman who commands his trading not by his whim or impulse sets himself apart from the crowd and commands his destiny. The impulse trader succumbs to his worst fear or gambles his way into the frenzy.

    It is necessary to observe the direction this behemoth is going and what it is doing in order to travel the distance it takes to become a success.

    Take a trade on an impulse and you have become someone at the mercy of the market.

    Its been said : Plan your trade, trade your plan. The alternative is failure or unending struggle.

    The primary mental barrier is to recognize the required discipline to do such and began the process of success in trading.

    Lay off the electric shock and drugs and voodoo approaches to improving your mental outlook.