The Importance of Psychology in Trading

This is part of the all-important--but sometimes overlooked--aspect of "trading psychology."

I will admit that when I first got into this fascinating business, I was skeptical of the whole "trader psychology" thing. My main concern at that time was learning as much about markets and technical analysis as I could--and my trading mentality or psychology would take care of itself. However, the more I learned about the markets and about trading, the more I realized human nature and psychology play huge roles in both.
The following are some valuable "nuggets" regarding trading psychology that I pulled out of the TAG workbook. It's my hope that one or more of these "nuggets" will help you better understand your own trading psychology and the importance of psychology in trading markets.

• Remember that becoming a profitable trader is a journey, not just a destination. The perfect trader does not yet exist. Try to become a better trader each day and enjoy the progress you make. Concentrate on learning the craft of technical analysis and on improving your trading skills, rather than focusing solely on the amount of profit or losses in your trading.
• Congratulate yourself and..

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