Losers bring money into the market which is necessary for the prosperity of the trading industry.

Losers bring money into the market which is necessary for the prosperity of the trading industry.

Many traders ride an emotional roller coaster and miss the essential element of winning: the management of their emotions.

Every winner needs to master three essential components of trading; a sound individual psychology, a logical trading system and good money management. These essentials are like three legs of a stool – remove one and the stool will fall, together with the person who sits on it.

When a beginner wins he feels brilliant and invincible Then he takes wild risk and loses everything.

Beginners focus on analysis, but professionals operate in a three dimensional space. They are aware of trading psychology their own feelings and the mass psychology of the markets.

Most private traders on a losing streak keep trying to trade their way out of a hole. A loser thinks a successful trade is just around the corner, and that his luck is about to turn. He keeps putting on more trades and increases his size, all the while digging himself a deeper hole in the ice. The sensible thing to do would be to reduce your trading size and then stop and review your system.