Understanding the psychology of the market and market participants
One of the hallmarks of professional traders that they understand the psychological state of the market and of those who take part in it.
This means they understand what traders think (amateur) others and acting on current market conditions, it may (Professional) generally timely work vice versa.
The market is designed on the basis of both amateurs and their trick before changing direction directly. Traders know this and benefit from it.
Most importantly, the professional traders are aware of the psychological conditions during trading and they always monitor themselves to ensure they follow the predefined plan and act according to the logic and objectivity, not out of emotion.
Must watch it yourself objectively in while you are trading, if you do, you will quickly lose your discipline and out of control.
Professionals are trying to avoid losses The ability to avoid losses, but accepted and understood as “part of the game” is characterized by professional traders. Professional traders often try to be completely losses by doing things very badly such as trading without using the stoploss order or hedge and cover their positions while trading or attempt to recover the money that would go in a speculation.
They do not understand as traders is that it is not possible to avoid the loss, will inevitably fall one way or the other. The more you try to avoid them, were larger and more painful when they occur.
So it is best to learn how to manage and control your losses as a “tax” to trading activity in the market. The more accepted this and started dealing in this sense began to earn money and become more stable circulation.
A good education and high culture and masterful layout Professional traders know what to make.
They know what they have to teach themselves how to trade.
To be clear, I don’t mean at all that you need a college education to become a professional trader. In fact, there are a lot of successful traders who have not completed university education or even joined him.
And what I mean is that you must educate yourself and educate yourself by reading and studying and getting training from atrusted source.
You can learn a lot from other traders, but you probably don’t know one of them personally, so you can learn from online sources, and my example is, where will meet other traders have the same tendencies and ideas.
You need to learn how to trade. To understand how to read diagrams and specific price movement on screen graphic is essential. For that you have to learn from reading charts and learn to discover what is going on in the market, as well as find active access points by using a strategy of “price movement” to make trades in the market.
It is very important that you learn how to understand the market, don’t bother, as entry or exit signals. And get references from someone else to do the trading of which is similar to driving a car eyes closed and routing instructions from someone else when you are changing the direction of the car, and driving speed and time vehicle stops.
It may continue for some time, but eventually will end up in a collision with a car. Should you when trading learn how to read the charts in order to be able to “assess” the former and current market situation that has yaeol him later. All professional traders know how to do this, and they know they know how to read and interpret the price movement.
The end of the sixth lesson
Understanding the psychology of the market and market participants
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