Essential Trading Psychology Over the years the big d

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Essential Trading Psychology February Last edited 18/07/2008 05:31:15 PM

Over the years the it has become clear to me the difference between winning and losing traders is not the methods they use however the Mind set and Money Management Rules they have.

MIND MONEY and METHOD

Beginner traders focus on the method and may have an unblemished mind set - free from hang ups and pain associated with loss. Beginners are the best traders to teach as they come with an empty cup. Often beginners will luck into trades simpy by following the rules.

I was like that - making over $65million (equity peak) in a few years for my Company - in my first few years of trading >> Very wonderful experience!!!

In this article written as a weblog as I trade you will find all sorts of gems as I journal my process.

18/07/2008 05:31:15 PM
Today, I am short from last night - after 3 Short Term Trading Signals in a roaring bull market over the last few days! Which market you ask? well I trade a few markets - I might have a proper authority - however advising is not my game.

My sell short signals are flashing like crazy - have to take the signals - I remember the top in this market that I predicted and nailed 11 years ago to the day - that gives me a bias. That was a great top and lasted for two years. Too much Gann work in my head... thats bad - better tighten my stops. Gann brings out the ego in me - dangerous. Maybe that's why I am journaling???

Anyway, I now have 3 signals that are short term signals some long term cycles - however unlike 11 years ago there is not enough bullish noise around. Something not right. Long Term Price targets and I mean long term are for about 30 points higher than here. Nothing at all to suggest the market has stopped moving.

OK so make sure stops are tight and make sure you follow your rules. One signal calls for me to take profits during the day session. But surely its a top here? Its working for me am in the money - just! Ah thats greed coming in or is it fear of missing out? Fear of missing out - yup that's it!.

Larry Williams once told me: greed makes you do the things you shouldn't do however fear stops you doing the things you should do.

OK so I should follow my rules: Take profit if I get the conditions under my rules. And if it becomes a bear market then my rules will work on the downside.
Isn't that relieving? Liberating in fact! Ego loss here feels better.

Ego makes my body tighten and contract - I can feel it again in that statement.
Anyway, bye for now.

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This is general information not prepared for your specific investment objectives, financial situation or needs. Consult a licenced investment adviser before making investment decisions. Past performance is no guarantee of future performance. There is a risk of loss in trading as well as potential for profit. The opinions and methods you will hear today are from Jake Bernstein. The site is based on past historic data and is about methods and education. Jake Bernstein is a private trader and has much experience in trading. You will be taught his theories and opinions on trading methods. In no way is this intended as financial advice or an invitation to trade. Jake Bernstein is a not a Licensed Financial Services Licensee and therefore does not give investment Advice. He is teaching you his trading methods and that is all. You understand that you have to do your own research once you have learned these methods on your own markets. Jake Bernstein and ADEST make no guarantee about how you will perform using these methods. Jake Bernstein is not licensed to give advice or cause you to deal in a financial product in Australia. Please do not ask him to do so. He will keep to his methods. There will be a Licensed Financial Adviser at the Seminar with whom you can consult with about trading decisions. Do not ask Jake Bernstein for his current or future market opinion or anything to do with your own circumstances.

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