The Guarantee of the Success of the Trader
“Concentration of attention.”
“The distribution of attention.”
“THE SPEED OF THINKING”
“THE STABILITY OF MENTAL ACTIVITY”
“AWARENESS OF THE MENTAL ACTIVITY”
“FLEXIBILITY OF MIND”
“CRITICALITY OF THE MIND”
Whether it is possible to assert with confidence, that from mental qualities and abilities depends on the success of the trader? And whether you can develop these qualities? Yes, as in any other case. But for a successful trader certain qualities have a decisive significance. They can be called applied, or identifying qualities.Attention occupies 80% of the total volume of consciousness and memory;
The high concentration of attention, as a rule, helps to take the right decision;
Attention - a very important quality that helps you capture the right information and throw away the excess. Possessing the ability to focus and concentrate, you can always find a way out of a hopeless situation.
Attention has a number of properties:
- Resistance - characterizing the ability to focus on one and the same object for some time.
- Concentration - the degree of concentration of attention on this object.
- Strong as the ability to move the focus from one object to another.
- The volume of attention - the number of objects that we can deal with sufficient clarity at the same time. It is believed that a person may hold at the same time in the attention to eight items.
- The distribution of attention is also important, because a man can’t do both jobs well.
- The volume of attention. One of the most important qualities of a trader.
How this quality affects the concrete results of the work?
Example 1 - elementary.
Trader ü1 works only on the EUR/USD pair and uses technical analysis, - considers on one monitor 5-minute chart with the indicator of MA, and the slow stochastic. Maybe just has only one weak computer and the monitor 17d.
Trader ü2 is also working on a technical analysis and considers the EUR/USD USD/CHF GBP/USD USD/JPY having the monitor 22d.
Trader ü3 examines four hourly charts 70 currency pairs at the same time on the screen in the 30d, with a full detail of each chart.
Who of them will receive more profit, at the same the right determining the trend, equally competent installation of Stop-loss and Take Profit, the same Deposit, the risk management?
Example 2 - complex. Those same traders and conditions. But:
Trader ü1 uses only one currency pair, EUR/USD, without taking into account other factors that affect the market.
Trader ü2 uses 4 of the instrument, and takes into account factors:
Indicators of economic growth (gross national product, industrial production, etc.)
The trade balance.
Trader ü3. uses 70 instruments, and shall take into account:
- Indicators of economic growth (gross national product, industrial production, etc.)
- The trade balance, the degree of dependence on external sources of raw materials
- The growth of money supply on the domestic market
- The level of inflation and inflationary expectations
- Interest rate level
- Country’s solvency and credibility of the national currency at the world market
- Speculative transactions at the currency market
- The degree of development of other sectors of the world financial market, for example the securities market, competing with the foreign exchange market.
- The dollar index chart
- Schedule of futures on Gold
- Schedule of futures on Oil
- news on the economic calendar
It is clear that the trader ü3, because the volume of attention more, it takes into account many factors, affecting the market, and thus it is more informed than others, and better assess the situation on the market.
It’s not easy working place professional trader, consists of two monitors, showing a lot of data, multiple keyboards and mice, to switch between the different objects of attention, for more detailed acquaintance with each of them.
Concentration of attention.
The high concentration of attention helps to take the right decision. Low - contributes to errors. Fatigue, illness contribute to losses of concentration and losses on the account.
Concentration is an integral part of a disciplined consciousness and manifests itself as the ability to strong-willed effort to focus all their attention and hold it on the object or the process quite a long period of time. limit, please read more:RUS or Eng
Can I increase the level of concentration? Yes! Here are some of the exercises:1 2 3
Sit at the monitor and fascinated look at a single point - of little use. To take into account many factors need to be able to switch between them.
The distribution of attention.
At the same time hold the attention of all the factors affecting the trend, it is impossible. Foresee in advance, which will influence the market is not possible, therefore it is very important to be able to distribute attention to the monitoring of various factors, the extent of their importance, because few people can do several things equally well.
Can we train the attention, as the most significant mental ability and the quality of the trader, which depend on its earnings? Namely: stability, concentration, a strong increase in the volume of attention. You can. limit, please read more:RUS or Eng
But to have enough of the necessary amount of information about the market, and attention is not enough for making the right decision. For this you need to think correctly. limit, please read more:RUS or Eng
«History repeats itself» is an axiom of technical analysis. Trader, forgetting history, stepping on the same rake, because of the bad memory. Or forgets about his defeats, that creates the illusion of infallibility, is the result of such self-confidence is not long to wait in the form of loss. Porous memory trader is his inside pocket.PROTECTION.limit, please read more:RUS or Eng
THE STABILITY OF MENTAL ACTIVITY
The ability to maintain stability and calm mental activity, under the influence of targeted and random noise. For the trader it is important to have this property, it affects the stability of the work. And even when the account on the reached the stop-out, we should calmly to understand the reasons of failure, to draw lessons or simply change the broker. Very often the failures are the fault not the traders, and not worth yourself to blame if you did everything correctly.
AWARENESS OF THE MENTAL ACTIVITY
A very important quality, it is indispensable for the «debriefing». Is impossible without progress. You should clearly remember what factors have influenced the whole course of your thoughts and your acceptance of incorrect decisions, in order to eliminate errors. This process is different for everyone, and it gives a necessary practice.
THE SPEED OF THINKING
Who has not had time, he was late. Especially those traders, who work on the news should be able to instantly when exiting news, evaluate them, and to make a quick decision, without prejudice to the processes of logic thinking. However, the more factors are taken into account, the less speed. Determine in advance the priority of some factors in front of others is possible, but a combination of different factors, with the opposite meaning to the market, makes the calculation of their overall importance and impact on the market a difficult process, because of its complexity.
FLEXIBILITY OF MIND
Freedom of thought from the preconceived assumptions and preconceived ways of solving, ability to find new solutions with the change of the situation and the conditions of the problem. limit, please read more:RUS or Eng
CRITICALITY OF THE MIND
The ability to strictly assess the work of thought, carefully weigh all the arguments for and against the emerging hypotheses and to expose these hypotheses comprehensive verification. Man with no critical mind is inclined to the first came to him in the head of the solution of the problem considered as final. Critical mind - it is a disciplined, «strict» mind. .limit, please read more:RUS or Eng
However, it is obvious that those few, who have been steadily and earn a lot in the FOREX market, possess uncommon mental qualities. Of course, even with exceptional mental ability, to open a trading account and immediately earn a couple hundred thousand dollars does not happen. It takes training and work experience
Training materials lot, even free, here are some links:
Books about technical analysis