In the media you usually read a lot about trading psychology. The key message is always that successful trading consists of 90% psychology and the rest of risk and money management. As is so often the case, this is a blanket statement that does not really help the beginner.
First of all, it is always a pleasure to sweep under the carpet that knowledge of the traded markets is also part of it - and not just on a basic basis technical analysis, but also based on the product itself. For example, if you want to trade gold, you should know at least a few basic things about the precious metal.
Trading psychology cannot be defined generally.
Due to the Individuality of every personality is not possible to list general terms like "greed and fear" as the reason for the failure. On the one hand, these terms are perceived in different ways, and at the same time, the reasons for this lie deeper and are also based on different experiences.
Every second trading coach tries trading psychology. One should ask why this is so. Other knowledge is scarce and usually not so cheap to get. The crux of the matter is that the things that work for the coach do not necessarily have to work the same for the learner.
What is also often overlooked is the fact that it only works for the coach because he has acquired this in years of activity. It is therefore questionable where the idea comes from to be just as successful after a few seminars and webinars.
Trading psychology can also be simple
Another way, but not either everyone's focus is to focus on just a few things. This applies to both analysis and psychology. This is only a factor, but not a main factor. In the early days, traders were too concerned with psychology. You can't blame them, because many underestimate their abilities, and since everyone prefers to deal with their own psychology rather than with information analysis, so-called trading psychologists can sell themselves well.
It is usually enough from looking at the whole thing from two perspectives. The basic psychological barrier in trading is fear of loss. It is our risk aversion. The entire financial system is based on risk - and risk means fear of losing something.
The question therefore arises: How can the fear of losses in trading be avoided? If you don't have an answer, you approach it from a different perspective and ask yourself: "What makes me safe in trading?"
The second question should be much easier to answer for most people. Nevertheless: A trader with less experience will respond more risk averse than an experienced one. "Sure I feel when the trade is quickly 'in the money'", but almost everyone would say.
From this one can directly deduce that it would make sense to look for trading opportunities that just favor the quick "in the money". These can be technical models with a cheap CRV such as breakouts.