Essential Trading Psychology February   Last edited 20/06/2007 09:19:33 PM

Over the years the it has become clear to me the difference between winning and losing traders is not the methods they use but 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.
 

20/06/2007 09:19:33 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 - but 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  - but 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 David 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 but 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.