Myth #1 – Trading System is mechanical and thus takes away your emotions and judgement
Trading System itself takes up only a percentage of trading. Sean Tzu started his trading career by attending a power trading system course and realized soon that no matter how good the system is, more than 90% of his course mates including himself cannot follow the system due to trading psychology. Those who succeeded immediately after the course are found out to be experienced and professional traders who already mastered trading psychology.
Besides trading system, the other 2 important components in trading are money management and trading psychology. Due to the fact that no trading system is perfect, the need for money management and trading psychology will never turn obsolete.
Myth #2 – Trading Psychology can only be acquired though actual trading
This myth used to be true until Sean Tzu made a break through and realised that trading psychology can be trained and conditioned using Neuro Linguistic Programming (NLP). However, it must be taken noted that NLP by itself will not turn a novice into an expert because the trading battlefield can never ever be simulated fully. What NLP can do is to bring a novice trader to a higher stage prior to entering the trading battlefield and drill the trader so well that regardless of fear, greed or impatience, the trader will relentlessly follow the planned strategy. Such drilling is similar to that of military drilling of soldiers so that they will attain braveness and courage and continue to act upon the command of the commander even in the bloody and merciless battlefield. NLP can also help experienced trader improve on his performance by deleting undesired traits and patterns in his trading and imprint desired patterns. As such, a main bulk of trading psychology can be acquired and trained with new science and training methodology such as NLP.
Myth #3 - Great Traders Can Predict the Market Direction
All traders can predict the market, but some will be correct half the time. In fact, traders who try and predict market direction are not termed as traders, but speculators or worse gamblers. All great traders understand that it is impossible to predict the market, so they do what is next best, prepare. Great traders are fully prepared for whichever condition the market goes and win trading in any circumstance. Do note that I am not speaking about analyst and have nothing against them. In fact most excellent analyst never predicts the market but speak of trends and probabilities which are different from prediction. Probably the best people to predict the market are people who can move the markets like terrorists or Guru Joe who holds the crystal ball.
Author: Sean Tzu Resources Box: For more information on stock trading, please copy and paste this link http://www.stockinvestorworld.com
Sean Tzu within 4 years from the day he started trading, he made his first million dollar through trading alone and his earnings grow exponentially as the years goes by.
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