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1. Introduction to Subconscious Mind:
The number one problem that many traders face is not what they think, and they are also widely misunderstood. The problem is not in the markets, lack of capital, opportunity or lack of discipline on the part of the trader. It is a self-destruct problem to calculate currency trading and occurs mainly for one reason.
Your subconscious mind, which is another part of you, but on a more informed and more direct level, tries to protect you and tries to do the right things. What many traders regard as normal circumstances, fueled by feelings and mistakes and endless battle with discipline, is actually self-destruction.
When everything is as appropriate and as it should be, the natural conditions are calm, confident and a sense of security. There was no doubt, anxiety, insecurity and sometimes fear, signs that something was missing.
The mistake is to think that emotional trading is the way things should be done, and the fallacy is the notion that good trading comes only from desire or discipline that goes beyond emotions.
Your emotions are simply your subconscious mind telling you that something is wrong and you have to deal with it.
If this is true, …
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Loser_money avatar

nice article

magicratio12 avatar


WallStreetBlog avatar

buen articulo!!!

Dedoo avatar
Dedoo 31 Aug.

Good Article


good work

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If we were to compare FOREX trading with any other skills-based activity, no matter how difficult or important that may be, trading would always score higher on complexity. This is because no matter how good one is applying technical analysis, or reading charts based on experience or being the world’s most informed and intuitive market participant, the truth is none of it will ever be enough to achieve a good and consistent performance.
This is because the market may be like a living organism, but unlike how a medical professional can rely on some fundamental knowledge of how the human body works, the trader cannot. That is, the market changes in real time and what once worked without fail can at any moment betray the most skillful and experienced trader by behaving differently, irrationally and with no pattern of any kind.
Trading is more about technical tools, experience and fundamental knowledge. It’s more than money and risk management. It takes a multifaceted approach to be a good, profitable trader and the most important aspect of it is patience.
You have to be patient in becoming good at reading the charts. You have to be patient in actually being able to read the market. Y…
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zarina avatar
zarina 12 May

смешная карикатура ))

TheAnalyst avatar

Thanks zarina!

Skif avatar
Skif 17 May

I would compare the trading in the markets with the game of poker. All must be able to say  fold .

TheAnalyst avatar

Good analogy Skif, you must know when to fold indeed.  Overall though, I believe you can count more on skill when it comes to trading than in poker.

Skif avatar
Skif 17 May

))) Yes

orto leave comments
Most, if not all, serious traders are certain about the fact that psychology and the effects of individual psychological traits, profoundly affects the outcome of financial trading. Yet, few understand how it can be governed; worked with, let alone how to train it, or, if it’s to be trained at all?
Some believe that the psychological factors in trading can be excluded by automated trading. Well, as will be explained in a later article, most of you will be in for a rather big surprise!
I’ve teamed up with some of the leading authorities in aviation- and management psychology to build tools for assessing traders and their psychological aptitude to develop as successful traders. We have statistically validated and verified data that identify certain personal traits that will make you a successful trader or not. Amongst others, this has been done on live trading floors with professional traders. The results reveal strengths for the individual trader and what weaknesses that can be trained or should be avoided, all together.
Which would these traits be? The fact is that there are several. Well, here are a few examples that may be already known to you. 1) Intelligence, high-IQ, being a …
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Convallium avatar
Convallium 16 Mar.

Great article! I agree with it! We need about 10.000 hours playing chess to master it. So the same in trading)

Alisitas avatar
Alisitas 16 Mar.

Interesting vision!

vv2011 avatar
vv2011 17 Mar.

I like it)

Airmike avatar
Airmike 22 Mar.

Article is nice, but I see that many of the guys you mentioned at article wrote about psychology and stuff like that are extremely sure about their ultimate true. My opinion is, that they have just an opinion and they believe that's true. for example I agree with most of the things in article but I don't think that trading is a right word for classification of speculation . there is plenty of trading styles which are more sensitive to other skills. and i am not sure if opinion developed especially for speculations is ultimate true for other participants in the market. 

Fundamental avatar

Hello! Thank you for elaborating in detail about the article. True, some believe that trading is speculation or even 'pure speculation'. I am completely agree with you that we as traders  don't see ourselves as specultators, but work with  professional methods. In my second article I explain when and where I believe Kahneman and Taleb are wrong. On the other hand, if you did'nt know. I am citing Kahneman because he is a Nobel prize laureate, in economic psychology. There are actually  several hundered scientific projects that have been run to prove what they're saying.

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I surmise both Kahneman and Taleb would argue, that Sullenberger was lucky! True, but that simply does not cut it! Luck had nothing to do with the fact that all passengers and crew survived. This was formidable skill at the very pinnacle of human capacity! Another less experienced pilot would, more probably, have gotten them all killed.
So, where does this leave us as traders? First, if you think for a second that you could dream up a formula that will quickly double your recent funds from auntie’s 500.000 dollar inheritance in a matter of weeks, or even in a year. Try golf, you’ll be better off – or at least have more fun spraying the dough! If you’re not committed enough to put your back into real hard work to learn the skills of trading, you will never survive, nor will a pilot or an athlete in their ‘offices’.
Here is why. As slim as the margins are in an Olympic 400 m sprint, as minute are the differences in success or failure in entering a bid or ask contract in the markets, on the right side! It is even harder getting out once you found out that it was indeed on the wrong side. Worse, still, keeping the winners going if you were on the right side of the trade!
So, would you …
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jezz avatar
jezz 12 Mar.

Good start. I always like a good read on psychology. After all, it is our greatest enemy. I'm looking forward for the next one

olga avatar
olga 16 Mar.

I really enjoyed the discussion. I like the expression ‘low validity environment’, but I disagree that any time-frame is ever really regular. I’d see “skill” for forex as the ability to learn and adapt, and on those terms, the environment can be statistically regular. You cannot build a static model to describe forex but I believe you can build an accurate model as long as it’s based on constant adaptation and learning.Anyhow that's what I think. Both articles are very well written with interesting references and an interesting point of view.

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In my opinion there are three skills that every trader has to develop in order to be a succesfull live trader. 1. Technical skills and awearness of the environment that he is in.2. Mental skills (those are most  difficult to obtain because you can develop them trough experiance and self evaluation).3. Concentration (treating your trading as a business).The differance betwean trading with your own money and paper money is huge. First of all when you are trading paper money every desition that you make is widout any stress or fear. The desition that you take with real money is under pressure and fear. That makes a huge differace in the end results. I will give you my persona experiance as a live trader. I ve been trading forex for 4 5 years mostly with paper money. Lately ive been acheaving some consistant results in the trader contest and i decided to open a live account. I must tell you that troug the first week i made every rooky mistake that  a trader can make: overleveraging, not following the trade plan, not being abel to wait long enough so my position can unfold, placing too tight of a stop. I couldnt sleep some nights due to stress, i had sweaty palms almost always. Those mi…
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RobertBric avatar

I think there are a few more skills required. However, your description of the transition from demo to live trading is spot on. I suggest to novice traders to trade live (once they mastered the platform and their strategy) with the amount of $1000 i.e. 1 pip is around $0.1 depending upon the pair. This way one graduates slowly without being exposed to too much emotion. Plus, demo trading doesn’t have slippage which can substantially affect trading results (of course, depending upon the strategy). All the very best with your transition to live trading.

alifari avatar
alifari 19 May

When I entered the world of forex trading, I committed same mistake and opened a live account without having proper training on Demo account and guess what blew up several times +1.

doctortyby avatar

Good advices for beginners... But the article is a little too short

scramble avatar
scramble 19 May

i agree: real and demo trading are 2 different worlds into the same constellation. 'demo contest' trading is the 3rd one.
your article is really a summary of important things, why not explain them deeper?
good luck :-)

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