Did you know that 90% of trading is psychology? The range is between 75 and 90%, but it is clear that a very important part of your success as a trader depends on managing your emotional responses! Or, at least this is what most traders mention. Let’s see how it works!
Part of that psychology is knowledge!
You start thinking that what you need is knowledge. So, you collect information, you watch some videos, you do some tests with a platform, and you conclude that the knowledge you have acquired is not enough to win.
So, in the next step, you usually look for another knowledge. “I need knowledge, but the one I have doesn’t work for me, it’s not enough.” “I need more, another system, another market, another type of chart”. So, there will always be a new system, another new school, another indicator.
When the apprentice trader has invested enough time in this type of path and observes his poor results, he is usually perplexed. In theory, everything fits, but in practice, nothing works. When you learn a system, it seems infallible, analyze it, so take the inputs.
Analyze what’s on your mind, that’s psychology too!
But in reality, there is always something, no matter how small, that does not allow you to achieve the type of results you have in mind. You analyze well and plan the operation well, but it chains two losing operations. So, you refrain from the third opportunity that turns out to be good.
And, then you take the fourth and lose once more. And, in most cases, those traders who can persist and overcome frustration, usually do more of the same. They do not win because they do not have the right system, the necessary indicator, or the essential secret. And those who remain after delving into the more exotic alternatives, tend to analyze their poor results and come to the conclusion that this trading is much more complicated than it may seem! That’s why you need to get a lot of education first!
A privileged few, a really small group of the total after so much suffering and frustration, come to a new conclusion. All the knowledge has been searched outside and the solution has not appeared, they only have one place left to search. If it’s not outside, it’s inside, in their heads, in their minds. Yeah, with the ideas that come to market.
So, from doing so much work with one system after another, in one market and the next, with one type of chart and with the latest novelty, if they are lucky, they conclude that it is not about looking outside and looking inside it will not be. They ask themselves if they are losing themselves. Could it be that all defeats are due to both the system they use and the mind since they apply it?
Inner work is the key to success!
So, they come up with that idea and embrace it! This concludes that inner work is the key to their success. Now they have a different explanation for their poor results. It’s no longer the market, it’s no longer the type of graph. No, it’s no longer the system, it’s your ideas, your fears! And, your irrational beliefs, then you’re ready to do something truly new!
So, you can start working on yourself, these are the traders who say that 90% of trading is psychology. Not because there is no technical part to master, not because systems, tools, or models are not needed but rather because after all the path to knowledge the real obstacle is self-generated. It is the trader himself who loses.
Now, knowing that is understanding that there is an internal battle pending does not mean, far from it, nor less, that the trader will emerge victorious from that stake.
Apply your knowledge!
The only thing that achieves results is applying knowledge, and seeing where the real problem lies. That does not mean that you will be able to win the battle. And, we tell you that you must keep your emotional mind controlled and below a certain threshold of activation.
So, if it goes through when you are in front of the market, your most primitive mind, the one that is in charge of your survival, will take control of your actions and will act to get rid of the threat of the market and that will lead you directly to chain loss after loss.
Like we don’t tell you what to do to keep that mind under control like we don’t teach you to achieve that kind of inner victory that knowledge will help you with!
To finish, we will tell you one more thing! Make sure that your actions do not contradict your thoughts. Why? Because however you say, you will agree with what is being said that a very important part of your success as an operator will depend on your psychology! So, let’s start applying this and see how wonderful results you will have!