| To me psychology is the key to trading.
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| | chance of succeeding in the market. The
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| Many trades on hunches about economic or
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| | importance of psychology is that it
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| political trends, while others use
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| | focuses on reality, which is you have to
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| "insider information" or simply hope. Do
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| | live with your eyes open. To be a good
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| you remember how you felt the last time
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| | trader, you have to invest with your eyes
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| you placed an order? Were you anxious to
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| | open and make neutral decisions. You need
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| jump in or afraid of losing it all? When
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| | to recognize real trends and not waste
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| you closed a trade did you feel
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| | time on regrets or hopes that the stock
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| humiliated or embarrassed and started to
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| | will turn around from a downfall.
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| second guess yourself? These feeling
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| | Trading is similar to sky diving, rock
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| evolve among thousands of traders which
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| | climbing, and street racing because they
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| merge ultimately into a huge
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| | all share a common risk involved. These
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| psychological wave that moves the markets
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| | sports involve a considerable amount of
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| trend.
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| | risk/pleasure. Many participants in these
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| The majority of traders spend most of
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| | sports ignore the risks and take
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| their free time looking for good trades.
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| | thoughtless chances. A person who wants
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| Once they enter a trade they desired to
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| | to enjoy the risk and excitement of
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| be in, they start to squirm and lose all
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| | sports must follow the rules. When he/she
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| self control over themselves. They ride
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| | reduces the risk of a sport, they get a
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| an emotional train and miss the element
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| | sense of accomplishment knowing they have
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| of winning - which is the management of
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| | control over that particular sport. This
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| their emotions. Their inability to manage
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| | same criteria involves trading. You can
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| their emotions leads to a downfall in
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| | succeed in trading only if you handle it
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| their stock trades.
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| | as a intellectual pursuit to overcome the
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| All losing amateurs ignore the importance
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| | risks. To help ensure enjoyment/success,
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| of psychology. If you are not up to date
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| | a good trader must watch his capital
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| with the market, or you ignore mass
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| | funds as close as a sky diver knows the
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| psychology of crowds, then you have no
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| | exact time to release his parachute.
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