by Prof. Aldo Lagrutta, CEWE, MSTA, CFTe

"It takes courage to grow up and be who you really are." - e.e. Cummings, Poet.

"Do You Have The Right Psychology To Be A Trader or Investor?"

Prof. Aldo Lagrutta is a Certified Financial Technician from the International Federation of Technical Analysts. He is a recipient of the Bronwen Wood Prize bestowed by the Society of Technical Analysis in London. He's also certified to apply the techniques of Cybernetic Transposition.

  • The biggest obstacle in your trading success is YOU: We have learned that the effect of your own psychology on your trades has the biggest effect on your success than any other element: do you really have the courage to win or are you afraid of failure?

    The more sophisticated you become as a trader the more you will realize how your state of mind and discipline are essential to the foundation of your trading program success
  • Low Unconscious Performance Limit (UPL): Unconscious Performance Limits are like invisible glass ceilings that invariably stop traders from rising above the associated level. Most people have Unconscious Performance Limits’s associated with most things they want to achieve. However, many of these specific UPL’s are high enough that they don’t cause trouble.

    In trading, these unconscious levels (UPL) become very evident when they are not high enough as compared with what you want to achieve and they cause LOTS of trouble and engender enormous frustration. All aspects that are quantifiable in trading are ruled by these unconscious levels: Number of contracts that you feel comfortable trading, number of ticks you feel (unconsciously) are enough to win per trade, dollar amount per trade, per day, per week, etc...
  • Not a clear reason why you trade: Identifying your purpose and goal behind trading will be a major step in implementing a trading strategy and plan to reach that goal.

    What is my real purpose in trading the markets? You may discover that the essence of what you want to achieve by trading is not necessarily money.
  • Low of Self-Esteem: The thought “something is wrong with me or I am lacking something essential” leads traders to move from strategy to strategy, from course to course, from indicator to indicator until he/she realizes that the real problem is more related to self-esteem than to market analysis and strategy.

    Unfortunately, what the trader needs can not be acquired with another trading course nor purchased with counterfeit currency.
  • False expectations: This applies to two things: Return on Investment and Percentage of winners on a trading signal. Many people come to trading with the idea they will get above average returns trading their own account. The truth of the matter is that unless they stand on the shoulders of giants it is difficult to even shoot for a 0% return in the first year.

    No trading program is right 100% of the time. In fact, some of the most profitable trading systems are only right 30-35% of the time.
  • The wrong “understanding” of what trading is. The trader has decided to “stand under” a consensus/mass majority idea about trading without real or any proof to base it on. It’s shocking how much traders choose to believe and ultimately guide their trading careers by, simply because someone else “said so”. That leads them to either have unrealistic expectations, or the believe that trading is a competition against the most brilliant minds in the world.

    Experience has taught us that trading is not a competition: it’s not you against the markets. It’s not even you competing with other traders. As a trader, you are only in competition with yourself. The markets don’t even know you exist.
  • Lack of Proper Response and Adjustment to New Environments:
    Even lab rats, when shocked several times in a maze, will take another route. Our years of experience show us that traders can spend their entire trading lives retreading the same road. Unconscious habit patterns and false or erroneous beliefs are driving forces that keep them losing over and over again. Mark Twain said “if you do what you have always done, you’ll get what you have always gotten”.

These are only a few of the main obstacles that once transcended could help you become a successful trader. We have prepared a full webinar that can help make the difference between earning consistent profits by trading or just continuing to lose. During that webinar you will be invited to participate in a unique coaching program to improve your psychology in 6 weeks.

If you are interested in attending this webinar, please
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