The most important part of trading!

Online trading is one of the most unique way to make money online and if you can gained the right knowledge and develop the character that successful traders have then your own your way of amassing wealth in this business, but on the negative side trading is also the hardest profession on earth because statistic shows that the ratio between winners and losers is very bad, in fact some say 95% of traders fail in this business, whatever the real figure is the fact remains that trading is indeed a very tough nut to crack.

So, what is really the reason why majority of traders fails in trading? this is a very important question that a trader must ask and answer before he continue his trading activities otherwise he or she will just end up in a cycle of losing money. We all know that successful traders needs 3 components in order to succeed,these are a good trading strategy, implementation of risk management then handling well of our psychology. Of the three mentioned it is important to note the degree and order of which component you will give importance first in the learning phase of your journey as a trader because if you mess up with the order you will end up in the losing bracket in this industry and that is particularly is happening to majority of traders.

I read e-books, watch and listen different seminars and talks from trading gurus and experts perhaps a hundred times or even a thousand times, yet I still struggle to achieve the profits that I dreamed about 8 years ago, I may not be a bad trader now compare a few years back but I also know that it will still take time before I can consider myself a professional trader, but for sure I will achieve my goal soon.

Looking back from all of my experiences in this business that most reason why I failed in my trading is because of  "BAD PSYCHOLOGY", it is not about risk management and trading strategy that cause a traders to fail but majority of traders never realize it or perhaps realize it but ignores it, in fact I analyzed all my wiped out account before it is not really caused by a bad trading strategy or poor risk management, a trader cannot implement a good strategy and risk management if he has bad psychology so before a trader think about what strategy to use or what risk he will use in his trading, it is better if he gives emphasis first in learning the psychology of the market so that he wont suffer the same fate with the majority of traders. Knowing the importance of how our mind reacts to different market conditions and the degree it brings to our trading every time we commit trading mistakes is a vital point in once trading. Learning the psychological aspect in trading should be given much emphasis in traders education first before learning other stuff. In fact if I draw a relevance figure of the 3 components in trading I would enclosed trading strategy and risk management inside psychology.