95% of traders think that trading is all about having a good strategy and guts. How about trading psychology? What? Real man doesn’t think about emotions. He just do what he need to do. Psychology? It is good for women and gays.
Proven way to trade less and increase your profits
This method is based on Pareto principal, often called 80-20 rule. It is very simple and says that 80% of effects come from 20% of causes. It was first named and described in 1951 by management consultant Joseph Juran who based his rule on observations made by Italian economist Vilfredo Pareto.
7 steps to increase discipline and master your trading strategy
In this article I will give you methods which will increase your trading discipline most of which are based on scientific discoveries which are unknown for most traders. This should enhance your ability to gain a trading edge over others competing in the same market.
How to increase creativity while trading (and not only)
Inserted Video
You may wonder if you really need to be creative. Does it give you anything? Yes. When you are creative then it is easier for you to find a proper solution of your problem. You also see more connections in data so you make better decisions.
But do you need a creativity when you trade? Yes! For example when you create your trading plan you have to choose one or more the best formation or indicator and include it in your strategy. When you analyze markets you have to search for setups and find correlations in data you will have better results if you use your creativity.
When you open your transaction and manage it you also have to plan where to set a SL, TP and levels where price may turn around. It is easier for you to spot these levels when you use your natural resources of creativity.
You see now that in fact your creativity increases your results whenever you trade. You may now wonder how to improve your creativity and beat other traders who dont know about this video. Maybe you heard about exercises which increase creativity. But you are not sure if they work. You also dont have time to search for some materials about creativity and practice them. In this case I have got something for you. But first I need to tell you about some experiment.
In experiment described below scientists checked unusual methods which increase creativity.
People were divided on two groups. People from first group sat in front of a picture which represented routine, for example picture where all signs were green. Researchers didnt force people from that group to stare at that picture but it was so big that they had to notice it.
Second group sat in front of a picture which represented breaking the rules. For example picture were all signs were green but one was yellow.
Next researchers checked creativity of both groups. They asked them to find as many ways of using a brick as possible. People from the second group were much more creative. They found much more solutions. Experts also evaluated them as much more creative.
What does it mean? That you can increase your creativity without any effort, take advantage of it and beat other traders.
You just need to have some picture around you which represents breaking the rules. You dont have to focus on it. You just need to have it around you. It was proven in scientific experiment that it will increase your creativity.
OK, but how to get this picture? I searched for it and I know that it is hard to find it on the internet. Even if you find it then it may be also hard to print it. Moreover you may have no time to prepare it for yourself. I know that it takes some effort because I made one for myself. But you can relax. I will share it with you.
How much does it cost? 100$? 10$? Nothing. Because you watch this video I will give it to you for free.
Just click link on the screen, visit my website and leave your email. You will get your picture with report about increasing your trading discipline. I am sure that you will find it useful and get value from it.
How my dad shattered my dreams but is the reason I’m a trader today!
This is a touchy subject.
12 years ago, I had a dream. A dream to be a theatre actor and star in musicals such as, Les Miserables, Phantom of the Opera and even the Rocky Horror Picture Show.
One day, I was sitting at 180 Degrees restaurant having brunch with my dad. He told me that being an actor won’t bring me the financial stability I need, to make a comfortable and stable living.
Obviously I was shocked and my dream was shattered.
You know that psychopaths are people who dont care about social rules and commit awful crimes. And it is true. But do you know that that many successful businessmen, lawyers, politicians and also traders share the same characteristics like psychopaths?
Can you control your luck? Is it possible? And what does it mean luck in trading and investing?
In this video by luck I mean taking more high profitable transactions. So what do you think? Can you increase your luck and take more these profitable transactions? Proven way to increase luck in trading
Before I answer this question I want to tell you about Richard Wiseman. He is a professor of psychology. He also investigated beliefs and experiences hundreds of lucky and unlucky persons.
For example Stephen who bought a newspaper with a winning lottery ticket. But that day also 30 thousands of other people won in that lottery and Stephen got only few pounds. In other contest Stephen won large number of shares and bonds of a well prospering company. Shortly stock market collapsed and Stephen’s shares were almost worthless. Once Stephen hired a lawyer to his company to help him with a paperwork. During first few months everything was fine but later Stephen started getting calls to pay his old bills. Stephen discovered that his lawyer hadn’t paid them but took money into his pocket. After that accident Stephen had a heart attack and become bankrupt.
But Richard Wiseman found also positive examples like Lee who as teenager was almost grounded by the harrow but fortunately he saved his life. Few years later his dad asked him to help him with some difficult task. Lee didn’t want to go with his father but he felt that he should. And he was right because he met his dream woman, got married and become a happy husband. He also worked for 20 years in sales and marketing and because of his successes he became a manager of a big chain which sells toys.
After investigating hundreds stories of lucky and unlucky persons Wiseman found 4 factors which define if you are lucky or not. It is also important that these factors don’t depend on your wealth, age or gender. They are absolutely under your control so you can also become a lucky person. Moreover one of these factors is strictly connected with trading and investing. Wiseman discovered that your luck depends on the way that you perceive unlucky accidents in your life.
In fact, if you want to a lucky person then after extremely unlucky accident you should be happy that it could be worse.
How does it work? If you want to succeed in something then at the beginning or even later you have to deal with many obstacles. If you feel sad or depressed after making a failure then you will probably be less effective, don’t take all chances that you have or even give up. But on the other hand if you are happy despite your failures then it is easier for you to be focused on your goal and stick to your plan.
Do you see that it is strictly connected with trading and investing? If you are depressed or sad after taking a loss then it is hard for your to stick to your plan. On the other hand if you are happy despite taking a loss, because you know that it could be worse then you can focus on your strategy and follow it.
So how to take advantage of it in trading and investing? Imagine few bad scenarios that may happen to you. For example: you miss a very profitable transaction, you take a big loss, you blow your account.
Now find a reason to be happy despite these scenarios.
OK, you miss a profitable transaction, but it could be a loss.
You take a big loss but you could blow your account.
You blow your account but you could lose even more.
How to take advantage of it? First monitor your progress on a paper. By progress I mean how often you find a reason to be happy despite bad scenario and how does it affect your financial results.
After some time you will accept bad scenarios and be more focused on your goals and achieve them.
Behind me is the London Eye which is a very big Ferris wheel, 135 metres to be exact.
I’m currently here in Southwark at MoneyWeek headquarters in London. And my trading account, is sitting in Johannesburg, in South Africa.
I guess that’s that the amazing thing about trading really. You can literally trade any market, index, currency pair you like wherever you are. And because the Forex market is a 24 hour a day, five day a week market. With the different time-zones, you can trade whenever you like.
You may be surprised that only one book from my list is somehow connected with trading. Other books are about business and self development.
But it is a good news! If you apply advices from these books in trading then you will increase your financial results and quality of your life. Moreover because usually other traders don’t read books about business and self development then it will be easier for you to beat them.
3 scenes from the Stars Wars which may improve your itrading skills
Before watching The Force Awakens you may want to refresh your memory and play some old Star Wars movies. It is a good idea because you will have a lot of fun. But not only. You will also learn things which will improve your trading skills.
Do you prefer being a perfect or a winning trader?
I am a slim person (you can check on my Youtube channel) but few years ago I realized that I have a little bit too much fat than I should. It was not much, I still wear the same clothes but I was not satisfied of my body.
Hence I read on the internet how to change it. I found that one of the best solutions of this problem is Weider’s Six. It is a set of exercises which you need to perform during few weeks. It is also important that a number of reps increase almost every day.
Trading Psychology - How to Control Emotions on Forex
