smbcapitalDavid BlairLeave a Comment

I am often asked what I consider the most important indicator when managing a trade from start to finish. My answer has nothing to do with a chart or any system trading indicator associated with it.  My answer? Psychology.  From personal experience, I consider trading to be 100% psychological. All of our choices, from the type of price chart employed, to timeframe(s), to selecting a trading edge based on specific parameters, requires us to take action based on the many and varied principles of psychology.  Don’t believe me?  Ask yourself the following:  how can two traders with the exact same tools at their disposal produce different results? One marked by failure; the other success. Take a look at the following articles.  They may help you understand the difference.

Many novice traders may believe that it is very easy to make money.

Successful trading is as much about psychology and determinism as numerical ability, as there remains a pressing need for investors to tap into their instinct without allowing emotion to dictate their strategy.

The psychological aspect of trading is extremely important, and the reason for that is fairly simple: A trader is often darting in and out of stocks on short notice, and is forced to make quick decisions. To accomplish this, they need a certain presence of mind.

Stock traders make decisions based on psychological factors, including emotions, and may place undue weight on specific information at the expense of other relevant data.

Elite per­form­ers are dis­tin­guished by the struc­tur­ing of their learn­ing process.

One of the most productive things you can do to become a profitable trader is to make a list of your most common mistakes.

You do not trade the markets. You can only trade your beliefs about the markets.

It’s one thing to have a trading plan and system, but actually following it, especially when things aren’t exactly going your way, is something else entirely.

A trader’s mindset or psychological presence is extremely important towards their progress and decision making.

I am convinced how a trader emotionally reacts to the markets while trading will determine their success more than anything else.

From beginning to end, it’s all about psychology.

David Blair


*no relevant positions

The reports forwarded to you from David Blair and Crosshairs Trading, LLC.  are the copyrighted property of Crosshairs Trading, LLC.   All of the foregoing is commentary for informational purposes only and is not to be considered professional advice (psychological, financial or otherwise). All statements and expressions are the opinion of Crosshairs Trading, LLC. or its representative and are not meant to be a solicitation or recommendation to buy, sell, or hold securities. We are not licensed or registered in the securities industry. The information presented herein and on our related web site has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. The security portfolio of Crosshairs Trading, LLC.  or its representative may, in some instances, include securities mentioned herein and on our web site. Estimates, assumptions and other forward-looking information are subject to the limits of forecasting. Actual future developments may differ materially due to many factors. The reports may not be copied, reproduced, forwarded and/or posted on the Internet or the World Wide Web, or otherwise published in any manner.

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