Happy New Year Traders.
We trust you had a wonderful celebration and got in some good rest and family time as well.
Here is another new article which will reside in the “Citadel”, a place where all the important documents of study will be compiled from now on.
Let’s pick up where we left off last year, taking you through the vital steps one must travel in order to become a true Sorcerer of the Market.
The next stop on our Journey: Psychology
Understanding the Psychology of the market and the traders who are participating is probably the most important, yet least understood or studied subject by new traders coming into the market for the first time.
When trading stocks in the market, it is inevitable that the trader will be subject to the entire range of emotions in the cycle we discussed in previous study.
It is of the utmost importance that the trader remove themselves from any emotional attachment to a trade. Always remain cool, calm and collected at all times and stick to the plan you set up ahead of time when analyzing the trade and applying your risk management rules.
Do not feel attachment to a trade, feel attachment to your discipline.
Take this lesson and apply it to your trading this year. Following it will ensure that you become a better trader and avoid the big losses that can spell trouble.
We hope this lesson has found you well as we embark on another exciting year in the market. Trade well!