4 Controlling Trading Psychology by Norman Welz.
4 Controlling Trading Psychology by Norman Welz – Controlling trading psychology is not as easy as understanding the theory. However, when reading the book “Trading Psychologie”, your mind will be “slapped” by the author because of the content in it that is very relevant to our daily trading activities. How influential is this book for us to learn about trading psychology? Let’s take a look!
Table of Contents.
Controlling Trading Psychology by Norman Welz Form Trading Book ” Psychologie “
Trading psychology is a German book published in 2012. This book was written by Norman Welz, who discusses the psychology of trading. Norman Welz is an experienced psychologist, journalist, and trader.
His background, which is a psychologist, makes him so reliable in the field of trading psychology. No wonder he also trains traders to develop their brains in the right direction. Many readers have commented that the book Welz wrote is the best trading book they have ever read.
All Things in mind.
Most people like and need a sense of security in all their forms. However, every business especially trading has risks – Norman Welz.
It argues that no other profession creates so many intense emotions and reflects so much of our personality. Welz states that trading activities are our way of personifying money. According to Welz, we don’t just trade assets and money, we become money.
To trade effectively, the right mindset is very important. However, there is nothing more difficult than separating ourselves from the many factors, which have created our mindset from the very beginning and that determine how our brains function.
We are influenced by parents, family, friends, the environment, society, media, books, and many other things. By the time we start trading, all these influences tend to become one in our minds without us being able to separate them. This is what makes it difficult for us to limit the focus on trading and other focuses.
Why Do Traders Ignore the Power of Psychology?
To understand Welz’s approach, we need to understand the broad role of psychology and the brain. Welz believes that trading is 100% psychology. Mental strength is absolutely an indicator of trading success.
Moreover, about 95% of our actions are subconscious and we tend to imitate our behavior over and over again. If it is too frequent, this replication could repeat the wrong action or even bring havoc.
To support this opinion, Welz refers to a study in which 120 traders were given a system that had proven its intrinsic value statistically. After years of trials, it was proven that 119 of these traders failed with the system because their mentality misled them.
Welz agrees that most traders are men, who tend to think that psychology is not the most important thing. They think that the most important thing is the simple idea of being very rational, knowledgeable, and experienced.
However, according to Welz, rationality, information, and experience won’t help if the brain isn’t programmed and tuned appropriately. So what can we do to make our minds and subconscious act appropriately? Read to the end!
Welz Approach ( Controlling Trading Psychology by Norman Welz )
Over the years, Welz has helped people overcome their fears and obstacles, allowing them to win sports championships and even secure Olympic victories. Furthermore, he has also helped traders to earn money by activating their mental energy.
Welz emphasizes that everyone has unique mental bridges and barriers that need to be crossed to achieve success. The “brain” of trading requires a special skill, that is, market knowledge with the right mental abilities. It’s not that ordinary skills are not important, it’s just that they are usually defeated by mental patterns and wrong behaviors.
According to Welz, people usually only concentrate on the so-called logical aspects of charts and trends, including all patterns such as flags, triangles, and all other technicalities. In the end, it is without realizing that it is their emotions that will play a big role in the application of these technicalities. Welz believes that anyone can become a trader and overcome his fears. As long as people aren’t clinically ill, they can overcome that underlying anxiety if they’re willing to work on themselves. Controlling Trading Psychology by Norman Welz – Source: Tradehub.
Share this:
Related posts:
What is Debt Consolidation? Definition of Debt Consolidation The Best Strategies To Master The Field Of Debt Consolidation What is Cash Flow – Here’s 7 + How to Make It for Personal & Business The Difference Between Insurance and Savings, Don’t Get It Wrong! 5+ Definition of Active Credit and Its Differences with Passive Credit Definition of Long-Term Debt, Types, and 3 Benefits.