Psychology of Trading
You Must Know How to Think Like a Professional Trader
Learning to trade at a high level is not only about making money. Learning to trade at a high level is about understanding which Nexgen indicator patterns you can execute without fear. That process involves trading many winning as well as losing trades. Do not fear losing while learning, as long as a picture of your loss is shared in class to promote growth so you do not repeat mistakes. Keep your eye on your goal of being consistent and having successful results for your efforts.
Nexgen stresses that all new traders should complete their education using the simulator and market replay. In our experience, many traders test their trading rules and emotional control skills too early with real money. Many traders trade an incomplete or poorly developed plan without the winning mindset and usually pay the price with frustration and take completely avoidable losers. Nexgen will provide all of the tools to avoid this pitfall. Everyone can win; you must choose to win. You must choose to think like a winner. Nexgen's technical patterns provide the statistical advantage, your mindset and application of those advantages will allow you to reap the rewards with a proper perspective and execution.
John Novak, CEO, and developer of the Nexgen Fibonacci software spent countless months in talks with Mark Douglas who was a trading coach focused on the psychology of traders in the early 2000s. The time John spent with Mark formed a solid basis of study ideas for Nexgen's users. To fully understand Mark Douglas' methods, please read his book, "trading in the zone". Mark Douglas suggested using 20-25 trades as a good sample size from which to track the performance of your trading rules. When you focus on high probability trend trades after a strong Fibonacci-based top or bottom, you will be able to master the Nexgen trading concepts as you complete each sample size of 20-25 trades. Remember to participate in class and get feedback from the educators on those trades in order to avoid mistakes while learning.
John Novak believes that only a deep understanding of your technical analysis advantages and executing the CORRECT trades over and over will be the key factor that will positively influence your trading psychology. If you ever find yourself trading scared, mad, frustrated, or flat-out vengeful, please stop trading and refocus on the highest probability trades and your management rules. When needed, there is no shame in returning to the simulator to rebuild confidence in your trading plan.
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