Traders’ trading success depends on their trading psychology and mindset. Traders who accept this can be consistent successful trader. Trader can not overcome the fear, confusion, and despair which are existing in trading, without understanding of trading psychology. In this case they can not do anything right.
Trading psychology plan:
Generally many traders have the trading plan, but when they enter into the real money trading in the market, they never trade according to their paper trading method plan. The thing is, they give the first place to emotions which leads to improper trading.
Here the main thing is trader has a trading plan, but he or she does not have the trading psychology plan. They do not know how to transform the fear and emotions to actually trading method which is designed by him. They do not have the plan to understand and access their given non method actions and define the setup according to them.
If you want to make a trading psychology plan, then be honest to assess and accept what really happened. Generally there is nothing wrong in trading plan, the thing is trader never traded according to method plan.
Trading psychology plan components:
Trader should accept that losing is a normal part in trading. It is impossible to be perfect. The main objective of the trader is to be a profitable trader. Focusing on winning and losing can be replaced with objective of following a plan, which is not done earlier.
Trader should not judge himself. He should accept the responsibility of both losses and gains equally. Trader should trust himself to manage risk. The main objective is eliminating the emotions and having control on them.
The above information is about trading psychology plan and components of it.