Open trading account 
Lately I have been reading lot of stuff about trading psychology. Here is an interesting one, I came across.
LeBon ….. About crowds. Mass psychology of crowds
Whoever be the individuals that compose it, however like or unlike be their mode of life, their occupations, their character, or their intelligence, the fact that they have been transformed into a crowd puts them in possession of a sort of collective mind which makes them feel think, and act in a manner quite different from that in which each individual of them would feel, think, and act were he in a state of isolation.
People change when they join crowds. They become more credulous and impulsive, anxiously search for a leader, and react to emotions instead of using their intellect. An individual who becomes involved in a group becomes less capable of thinking for himself.
Watching a chart is watching crowd psychology. 1000's of traders are in this group. Most are following along as a crowd making emotional decisions like the above explains. People tend to be more comfortable acting and/or being with a crowd. To be a successful trader we have to break away from this crowd mentality. When was the last time you saw a mob of people make sound decisions? Yet that is what traders will try to do once their emotions are in step with those of the mass of traders that are in this crowd. Our thoughts have to remain independent of the masses. When this happens our positions in the market will be ready when the masses take price and run away with it. We just sit back and collect pips.
LeBon ….. About crowds. Mass psychology of crowds
Whoever be the individuals that compose it, however like or unlike be their mode of life, their occupations, their character, or their intelligence, the fact that they have been transformed into a crowd puts them in possession of a sort of collective mind which makes them feel think, and act in a manner quite different from that in which each individual of them would feel, think, and act were he in a state of isolation.
People change when they join crowds. They become more credulous and impulsive, anxiously search for a leader, and react to emotions instead of using their intellect. An individual who becomes involved in a group becomes less capable of thinking for himself.
Watching a chart is watching crowd psychology. 1000's of traders are in this group. Most are following along as a crowd making emotional decisions like the above explains. People tend to be more comfortable acting and/or being with a crowd. To be a successful trader we have to break away from this crowd mentality. When was the last time you saw a mob of people make sound decisions? Yet that is what traders will try to do once their emotions are in step with those of the mass of traders that are in this crowd. Our thoughts have to remain independent of the masses. When this happens our positions in the market will be ready when the masses take price and run away with it. We just sit back and collect pips.
To think is easy. To act is hard. But the hardest thing in the world is to act in accordance with your thinking - Johann von Goethe
