At Forex-Crazy and
FxTribe.com we advocate the use of the 3Ms (
Money & Risk management,
Mind and
Method) where:
Money & Risk Management = 50%
Mind (Patience & Discipline) = 30%
Method = 20%
The normal course of events, as you develop as a trader, is to tackle
Method (Technical Analysis & Strategies) first, followed by
Money & Risk Management, and leave the
Mind (Trading Psychology) aspect unadressed, which generally leads to continued poor or mediocre performance as a trader. Tackling the Mind or Trading Psychology aspects really unlocks the potential for greater profits and stress free trading. Most top traders will recommend the book
Trading in the Zone
to start to address the Trading Psychology side of the business:
However, I recently attended a seminar by a guy called Steve Ward who apart from having experience as a Trader and Trading Coach is also a top Sports (Psychology) Performance Coach, the principles are the same. He has recently written a book called
High Performance Trading: 35 Practical Strategies and Techniques To Enhance Your Trading Psychology and Performance
which encapsulates all that he teaches and contains lots of practical things you can do to improve your performance as a trader. I couldn't rate this book more highly. It is easily understandable and has a simplistic Zen like approach. Yes you will have to do a little soul searching and a bit of work but the benefits far outweigh that initial effort. A must have for any trader who is serious about improving their performance. Highly recommended and well worth the price.
