That’s the basic theory of the German book on commercial psychology “Trading psychologie” 2012. Many consumers and journalists have stated that this is the most okay book they’ve ever read or the first book to utilize.
Norman Welz is the book’s author and has acquired great interest in bourses and linked psychology as a psychologist and journalist. His field of expertise is the trading of psychology. He has not only significant knowledge but also some unique ideas. He instructs merchants, among other things, in the proper way to grow their brains.
It’s everything in mind
The core of the problem is that most people enjoy and require safety in every way, yet “trading is the worst business you can be in,” Welz adds. He believes that no other occupation produces so many sentiments but many of our identities. According to Welz, he went so far as to say that stock markets are money. “We don’t merely trade property and money.
Why do traders deny psychological power?
The whole function of psychology and the brain must be understood to comprehend Welz’s method. Welz believes trading is 100% of psychology, whereas the concept that psychology is essential to the stock market is nothing new. We can never assess financial risk or detect patterns without psychology. “No brain, no trading on stocks,” Welz said. Mental power is, therefore, highly essential to successful trading. In addition, about 95% of our activities are unconscious, and our behavior is replicated again and over. This replication implies too often that the false or even catastrophic path of movement is repeated.
Most traders are males who do not care about psychology. Instead, they consider it necessary to be simple concepts of being coldly reasonable, knowledgeable, and experienced. But logic, information, and expertise do not assist if the brain is not trained and tuned correctly. So, to become a professional ETF trader, train your mind properly and trade with proper logics.
Approach from Welz
Welz is engaged in the subconscious and hypnotic traders’ minds. Trainees are placed in a confident atmosphere, and in subconscious brain areas, the skills are rooted. In addition, he helped traders get money by activating the appropriate mind, drive, and conduct. He points out that every person has uniquely crossed or conquered mental challenges and hurdles to achievement.
Trading discipline results from changing one’s behavior, overcoming mental resistance and fear that are usually impeded. Welz believes “there are armies of opposition,” especially in the context of trade. The business brain involves integrating the proper investment and knowledge of the market with the right mental talents. It is not that the specific abilities are not essential, but that incorrect cognitive and behavioral habits frequently override them.
Therefore, effective trading includes personality changes. For example, Welz says, “those who are unwilling to try shouldn’t even bother trading.” On the other hand, those who concentrate exclusively on the so-called logical parts of graphs or movements. They encompass all of those models such as ‘flags’ or ‘triangles,’ or canals and stops,’ eventually, flood in the many emotions that unavoidably come into effect control the markets.
The preceding, says Welz, is his theory’s “ultra-short version” but, in fact, the subject’s substance. In addition, he believes everyone might become a trader and conquer his anxieties. Provided individuals are not clinically unwell; they may overcome those underlying worries if people are ready to work on themselves. Moreover, if success is to result, it needs a solid awareness of and control over reality. Naturally, financial knowledge and skills, information, and research still play an essential role.
There is a tending to underestimate the fundamental significance of trader psychology and technical focus too high. While both are important, the success of failed traders probably distinguishes them from the proper way of thinking. However, it is easier to master the technical elements of trade than to acquire a first-class commercial brain.
In general, this latter requires intensive effort on one’s personality characteristics and eliminating healthy behavioral habits. This procedure is not simple and takes a highly qualified coach’s attention, effort, and frequent support. However, there is a high probability of dividends being earned.