Archive for November, 2009

Psychology for Swing Trading

November 14, 2009

You may not have thought of it before but the hardest thing about trading is the psychology of it. Sadly, most traders completely ignore psychology and never give it the attention it deserves. Psychology plays such an important role in swing trading that it is the key to trading success.

Psychology here is all about how you manage yourself when trading. Trading induces a wide variety of emotions and reactions in people, more so when a trade they have just placed begins to make a large profit or loss. Many people lose control when it comes to trading and the thought of how much money they might possibly earn clouds their judgement.

Why would anyone neglect the side of psychology if it really is the key to being successful? Simply because people are scared that what they uncover about themselves will cause them more pain than good. This is the same kind of fear that ruins a good trade.

If you succeed at swing trading or not depends on you as a trader. Are you mentally prepared to win or lose? Changing your thinking is crucial to being successful in trading.