Psychology of Trading - Why 'Courage' is Not to Be Admired

The reason is that courage is by definition taking action in the face of fear, in spite of it as a matter of fact, and trading from a position of fear is not a desirable way to trade at all. If you have genuine fears, not just a little excitement from the anticipation of getting on with your trading day, then that is a sign that a real problem exists, and it is a problem that will wind up costing you.

What kind of fears are we talking about?

- The fear of losing money (or capital)

- The fear of failure

- The fear of making mistakes

...just to name a few.

Fortunately, there is a simple and direct way to become free of your fear. That is correct. Instead of feeling fearful and anxious about your trading, you really can feel very at peace and secure. It is all about replacing your fear with real and well-founded confidence.

Okay, so I can tell what you are thinking right now, "Oh yeah, that is a whole lot easier said than done." But the reality of the matter, the exact opposite is true. Trading while having fear and anxiety hammer on you is by far the harder way to trade than calm, cool and collected.

That's why the adage "Treat your trading as a business" is so critical to being able to trade with true confidence. The business-like approach gives you the full confidence that you are trading in a calculated and knowing manner, rather than going on hope and courage. Now, there are certain elements and processes involved in treating your trading as a real business, and a proper business plan is at the heart of it all. The word "proper" is the operative term in that statement. Most traders make the mistake of having "make lots of money" as their business plan, and that is all. That is not a business plan by any means.

To have real confidence in your trading operation, discover the trader training program specifically designed to walk you through the steps of properly organizing your trading business, including the creation of your own personal Trading Business Plan.

When you do not treat your trading as a business, you are running on hope and faith, which leave you open to all sorts of fears and other emotions. This also sets you up for inconsistent and sporadic trading, which is not the desired result. When you are properly organized and prepared, you have true confidence in what you're doing - and you no longer have need for courage because your fears have been addressed.

In short, fear is the absence of confidence. Where one exists, the other cannot. If you are feeling fear, whatever it may be, it is there for a reason and it is telling you that you are not as ready to face the challenge as you should be. If you were properly prepared, you would not be fearful at all. Trading with true confidence from proper preparation and operating in a business-like manner is truly the best way to trade!

Charts Updated

Some charts were no longer displaying correctly, this issue is now fixed [ more ]

Merry Christmas

Trade financial markets with fixed odds betting, and get a £20 Free Bet to try! (Click on Banner to go to BetonMarkets.com) [ more ]

08/09/2011 - Bull Market In Gold Over With Double Top?

A few weeks ago I penned a public article and private forecast for my subscribers calling for a major correction in Gold being due. 72 hours after my forecast, Gold [ more ]