TheStrategyLab.com Price Action Trading Support Forum

One of the main reasons (not the only reason) that traders are not able to apply proper money management, proper capitalization, proper trade management, understanding the true cost of a trade et cetera is due to underestimating the importance of trader psychology.

A trader that has read and learned proper money management will still need discipline to apply it consistently.

In addition, most traders are not suitable for trading prior to their first trade and it's mainly because they've WAY underestimated the importance of trader psychology.

Can these types of traders change?

Of course they can and hopefully before they've burned through their trading capital.

Also, don't make the classic mistake of thinking one (trader psychology) is more important than the others (proper money management, good strategy et cetera) because that's not how profitable traders look at it.

Profitable traders see that there's an interdependence between many different variables (psychology, money management et cetera) that allows them to continue their success as their trading plan adapts to market conditions that's forever changing.

Simply, remove, ignore or get fixated upon one thing and you'll self sabotage your trading as most traders do.

Yeah, sure there are times in our trading careers where one of the variables has more of our attention but that should only be due to the fact it's something we're learning for the first time along with trying to merge it into our trading plan with all those other variables.

Last of all, there are different types of edges. Therefore, don't make the mistake of thinking an edge is only something related to your strategy and this gets back to issues involving trader psychology.

P.S. My biggest edges has nothing to do with entry or exit signals and the edges are key to my current longevity in my career as a trader.

Regards,
M.A. Perry

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