Continue reading...Learning to trade is much more than just learning a strategy and applying it. In my classes I try to emphasize how important the psychological side of trading is to your trading success. This is why we could give 10 traders a completely mechanical trading system with very specific rules, and at the end of the month, there will most likely be 10 different results. Even though everybody was given the exact same rules to follow, human nature will cause people to override the rules because of the different psychological make-ups we all have.
Here are some of the things that could impact the results of this study:
Some traders will not accept losses and move their stops or worse, not have one in the market
Some traders will place their stops too close because they don’t like larger losses, or are trading undercapitalized – Scared Money
Others will take profits too early because they hear voices (Ego) in their heads telling them that if they don’t...
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