Keeping Your Balance by Moshé Prince
Mental balance is crucial to trading and investing successfully,
yet so challenging to master. Here’s how you can master it.
Predicting price direction in the financial markets is risky. If you follow someone
else’s advice and jump into a trade too early or too late, it can end up being a bad
investment. To avoid getting into such a situation, many traders develop trading
systems before they start trading. If you use a method or system for your trading, you
must know it inside and out. Knowing your system can make a big difference in your
trading results. You need to test it, test it, and test it some more over at least a two-year period. Traders who go through this
process are putting their knowledge
to use, always striving to learn
more, and relying on their skills.
By doing so, they are bringing
themselves into balance.
Boost your knowledge
There are many ways to increase
your knowledge level, such as
attending webinars, investment
courses, and seminars; reading
books and printed periodicals like
this one; and consulting blogs.
Since these can provide you with
access to a wealth of information
and boost your knowledge, it’s
good to set aside some time every
day to increase your trading knowledge.
This can bring about balance
in your life as well.
As I increased my knowledge
over the years, I found technical
analysis to be more valuable than
fundamental analysis. We are
all different — some may prefer
fundamental analysis, while others
may prefer a combination of
technical and fundamental analysis,
or any other type of analysis.
Regardless of what approach you
prefer, understand that there is no