Dear Day Traders Should I tell you what you want to hear or should I tell you the truth. Let me tell you the truth. Your lips occationally say "trading is a business" but do you really mean it from your heart? Let us investigate it. Have we ever asked ourselves "What is a business mindset?" Most of us have not, right? It means traders are saying "trading is a business" from lips but not from their heart. What is a business mindset? Business mindset is basically emotional intelligence. It is the healthy relationship with money. Parents send children to school taking all necessary precautions that they return back to home safely. A trader with business mindset will have a healthy relationship with money that empowers him or her to take all necessary precautions for their investment to be safe while trading. Here the emotional intelligence is a trader's relationship with money is like parent's relationship with children. Swing Trading Vs Intraday Trading The swing trader's chart is extraday chart which is full of gap-ups and gap-downs. In other words the chart is relatively unpredictable In the other hand intraday charts, particularly of index, doesn't have gap-ups and gap-downs. In other words the chart is relatively predictable. A stock trader with business mindset (emotional intelligence) or in other words healthy relationship with money will choose intraday to pursue trading. Trading Psychology Trading psychology is just an extension of business mindset. It means all the trading knowledge, trading techniques, trading strategies, etc are completely dedicated to protect the investment. For example a trader with business mindset will not trade on options before developing a successful trading strategy for the underlying stock or Index. To be more precise, trading strategy of a trader with business mindset will primarily focus on protecting the investment and making profits are byproduct of this protectiveness. How to apply business mindset? Recognition is the keyword here. If you are already a successful trader then recognise that you have good business mindset or in other words healthy relationship with money. What next? Keep recognising it. It will improve your overall attitude and creativity towards more trading success. If you are not successful yet in trading then recognise that you have to develop a business mindset or in other words a healthy relationship with money. What next? Keep recognising the need to improve your business mindset. It will soon or later transform you into a successful trader. "Each trade shall make the trader happy not because he or she has made profit but for the safe return of the investment." That is the heart beat of a business mindset.
OP has created a new thread. It will be the MOST VIEWED THREAD OF THE WEEK !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! And who will be viewing?!??!?! OP itself!!!
When it comes to the world of science, psychology isn’t one. It is a subject area that is too subjective; conclusions are mushy and not falsifiable or repeatable. As a college major, it is not in the top 20 (or 30) highest paying majors but in fact one of the lowest. The same is true at the graduate school level. In trading, psychology recommendations are outright silly: take for example “the most important attribute for making money in financial markets is self-confidence” but how is confidence, self or otherwise, defined and measured? If self-confidence cannot be defined or measured, it cannot be understood so how can it be the most important? Ditto for "emotional intelligence". The same can be said for this statement: “do not trade money until you are fully confident in your strategy”. Since “fully” cannot be measured it is useless. Consider the list of 6 keys to managing trade psychology which include “make sure to have an edge” (what is that exactly?); know thyself (who me?) and avoid emotional mistakes (not me!). Any subjective area that claims to understand personality based on toothpaste tubes is suspect. Trade using objective criteria such as average performance over time, risk-reward ratios, bracket trades, diurnal variation, circadian rhythm, differences in long vs short performance and always trade towards strength and away from weakness. All math no psychology, math rules psychology drools.
Thanks for sharing your thoughts buddy. Psychology is fundamentally based on: 1. Conscious mind 2. Subconscious mind Psychologists believed subconscious mind is very powerful than conscious mind and suggested us techniques and practices to tap the power of our subconscious mind. Wait! Is psychology a science or some imagination? Well, neuroscience estimates about 95% of our mind is subconscious. Is the claim that our subconscious mind is more powerful than our conscious mind real? Fortunately or unfortunately research works are constantly indicating that subconscious mind is very powerful. So what? If you are aware of subconscious mind then there is more chances that it works for you. If you ignore the existence of subconscious mind then there is more chances that it may work against you. Why? Because mind is said to be a negative phenomenon. Basically, philosophically, psychologically and scientifically MAN IS A SPLIT PERSONALITY! Smart/wise people face the reality while others pretend as if subconscious mind doesn't exist!
"Psychologists believed subconscious mind is very powerful" ... so how is power(ful) defined and measured and in what units and how is "very" defined and do be precise.
Buddy it is normal to be intimidated when we meet someone smarter than us. It happened to you today. It's perfectly normal and OKAY!