When I first started trading many years ago one of the things that struck me was how even when using the same trading system, getting the exact same signals, people would invariably come up with different results. It seemed really strange it wasn't until I realised the difference was not in the systems but in the individuals that I started to look into trading psychology. Trading can be compared to top-class sport. It very often places the same level of mental stress and need for psychological preparation that you find in top-class athletes. When you speak to or read about the best traders in the world it becomes apparent that they know being mentally prepared is absolutely essential in today's markets. Traders, just like athletes face unbelievable amounts of stress ,pressure and expectation that cannot be easily understood by the ordinary amongst us.
If you read any of the well known trading books such as the Market Wizards, you will find that most of these top-class traders indicate that psychology and the mind ,play as much if not more of a part in their success than picking the right trades. As human beings, we are not generally wired to be successful traders we all know that successful trading is about letting your profits run and cutting your losses short, however in reality, most human beings find it easier to take a quick profit and hang on to losing trades in the hope that they will come good in the end. It is not easy, mentally to suffer the drawdowns that we often experience as traders without some form of help or guidance about the mental side of trading and investing.
A number of the top trading houses and investment banks have started turning to trading coaches to help their top traders as they realise that success in trading is as much mental as it is about picking the right trades.Part of my business www.Learning2Live.co.uk is as a Trading Coach , my interest in Trading and Investing coupled with my qualifications in NLP (Neuro Linguistic Programming) lend themselves naturally to helping traders deals with the mental challenges of trading and investing. Over the next little while I am going to write some articles on this blog focusing on how you can improve the mental side of your trading and create wealth through the power of effective mental preparation.
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