We meet many people who ask us to show them a strategy so they can make money in the markets.

If it only it was that simple!

When we tell them it’s not so much about the strategy but more about you and your personality they just look at us bewildered.

The psychology of trading is about how you as a trader deal with the constant mind games you encounter each and every day in the markets.

In our opinion it is more important than any strategy, technical analysis or amazing indicator. It’s significance is on a par with that of money management.

To be successful in trading, it’s imperative you have the right approach. Never ever forget that the market is always right. It will take as quickly as it gives and doesn’t care who from.

If a trader can accept that, understand how they can deal with it, their chance of success is far greater.

Trading psychology is a huge subject and we could talk for days on the topic. The intention of this article is to determine what type of trader you are and to do this we will only be skimming through the topic of trading psychology in search of the answer.

The first lesson is to find a trading style that fits your personality. Many traders fail because they first pick a strategy then try and trade it without fully understanding their psychological makeup.

You should never try changing your personality to trade a particular strategy even if someone else has been profitable trading it.

Let look at an example below.

As an Intraday trader you must be very disciplined and patient. Most of your time is waiting for the opportunities but when they arrive you must act quickly in predator fashion without fear or hesitation so you can profit from the movements in price.

If you have a full time job would this type of strategy fit for you?

If you are impatient and enter the market for the sake of just being involved do you think an Intraday strategy suits your personality?

How about a scalping strategy that requires laser like focus throughout the trading session and you possess a very short attention span?

We cannot stress enough how important it is that you figure out what suits your personality and lifestyle.

Know Yourself!

You must be able analyse yourself to help determine which trading style and strategy is best suited to you. This will help achieve your goals as becoming a successful trader.

We could give 100 people the exact same strategy and results would all differ. This is a reflection of the dynamics of the markets and how people deal with them.

So how can you determine your trading style?

To start with you must be brutally honest with yourself.

Then like in any business you must be able to identify your strengths, weaknesses, opportunities and weaknesses.

The SWOT model is a popular used by start ups and established business and can easily be applied to trading.

You must use the SWOT model to answer questions such as:-

Have you the time to trade a particular strategy?

Do you get impatient when trading?

Do you carry out comprehensive technical analysis or just jump straight it?

Once you have indentified your SWOT, you can then ask yourself these questions to build a ‘Trader profile’

How will you Trade?

Intraday, scalp, position, swing

Where will you Trade?

Home, office, prop shop, on your mobile

When will you Trade?

Before work, lunch break, full time, London open, New York open

What will you Trade?

Forex, options, Stocks, commodities

The ‘trade profile’ will help determine the correct style and strategy one should apply when trading.

At Veer Trade we focus only on high probability Forex Signal trades that are held from 1-7 days. We do the hard work for you in identifying opportunities then send you the FX signals when they present themselves.

Our Forex signals advise traders when to get into the market, when to get out and how to manage the position. This allows traders to replicate our actions and profit from the Forex market in a concise manner without having to change their current lifestyle or prior commitments.  

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