Are You Resisting Trading Success?

Trading success does not fall into our laps, sadly. The reason is to do with our inability to recognise a few simple universal laws and follow them. Our trading psychology is dominated by our ego and this prevents us from opening up to new ideas and change our habitual thinking and our trading minds.

We know best. We know when the market turns and just because the QQQs have made new highs does not mean that we can’t be short soon, does it?? The ego is so big, it loves having its way. We traders pander to our egos instead of pandering to the larger forces of collective crowd behavior. It feels good when we are doing it. We are in charge of the markets, we have power.

Well, yes, it is true, we do have power, but not this kind of power.

I have talked about this before in other articles. Any time when you are placing your ego above the markets you are resisting trading success and making trading life more difficult for you than it needs to be. The market will tell you when it is ready to change direction and you will know when the trend changes. There is plenty of time to hop onto the gravy train.

I like scalping and scalp DAX and Crude.

I love the DAX, because it moves fast and presents me with many opportuny to trade during the day. The DAX is also a great teacher: Because when it moves it moves. There is no second guessing, you are either out, or you are with the move. You don’t have time to wonder whether or not you think it is going to continue a move or have a quick sharp pullback.

I think every trader and even investors ought to spend time to learn to scalp. It will work wonders for their trading psychology and make them better traders and better investors. When you learn to go with the flow and don’t allow your thoughts to interfere with what the amrket is doing you will start to trade well.

Scalping teaches one the art of trading without thinking too much. When you don’t think, you cannot resist. You may make mistakes, but that is part of the learning curve and part of trading. Scalping will teach you the art of losing gracefully. It will bring up all those areas where you have issues with your trading psychology which you can address in due course.

Consider scalping oil in the european trading hours and in the afternoon in American trading hours. This works well, particularly if you are a beginning trader, as oil tends to move slower than the DAX. It is also a much smaller contract. I am not suggesting that you should become a scalper if this does not suit your trading personality, I am suggesting that you should work on your trading mind using the vehicle of scalping as it will bring out weaknesses in your trading psychology faster than any longer term trading, or swing trading can do.