Trader Dale Volume Profile

Trading psychology
Trading psychology
Psychology is a significant part of trading. You can have a really good
trading system but when you aren’t able to follow a plan and stick to
your rules, then even a winning system will not work for you.
In this chapter, I will give you some psychology tips but in the end, it is
all about experience. You need to learn it yourself, you will probably
need to reprogram your head a bit.
The first step to start learning trading psychology is to open a real
account. Demo won't do. The money needs to be real. If the money is
real, then your emotions are real. Even with small amounts of money,
you will experience all the emotions that go with trading. You will
experience greed, temptation, fear, despair, failure, triumph... these
are emotions that demo account will never give you. The best thing about it is that even a small
trading account will do. Even a small trading account with 0.01 lot trades is a hundred times better
than a demo account.
Four kinds of trades
The first step to
start learning
trading
psychology is to
open a real
account.
One of the most difficult things in trading is to realize and put up with the fact that you cannot be
right in 100 % cases. In fact, if you manage to be right in 60 % in the long run, then you are a true
pro in this game! I think people, in general, have a problem accepting they were wrong. Since
school, we were praised when we were right and punished when we made a mistake. That is one
of the reasons why people have a problem admitting that they were wrong in their trading
analysis and that they had a losing trade. A losing trade isn't necessarily a bad trade though. I
suggest that you look at this from a different perspective and recognize four kinds of trades:
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