What is your motive behind trading? Do you want to make a few trades to help build your nest egg? Or do you harbour the dream of giving away your job and becoming a full time trader? Regardless of what you want to get out of trading, the level of discipline that you must apply is the same.
The emotions of fear and greed are the driving forces that guide a gambler’s approach to the market.If you are unfamiliar with these two emotions and how they effect your decisions, then when you start trading you will become intimately familiar with them. Your first major profit will bring you a euphoric high; your first loss will deliver a bitter low. It is this emotional swing that makes trading intoxicating for our typical trader.
How to desensitise fear and greed? With trading, it is all about practice until you feel comfortable with what you are doing. To draw a comparison, if you fear heights then you need to start climbing ladders. You will not conquer your fear standing on the ground. Condition your mind into accepting that this is perfectly normal behaviour.
Just like the fear of heights, learning the mental discipline of trading will require repeated mental conditioning. We call this practice “paper trading”. Instead of starting with real money you can set up “Demo Accounts” and learn about chat movement, money movement, entry and exit, trading planes and money management.
While your doing this set a goal work on mental discipline by thinking “Think Positive and Positive things will happen.”