American trader and hypnotherapist Robert Krausz argues that 75% of trading depends on your psychology and claims that hypnosis can be used to control your emotional state to maximise your trading performance.
However, he stresses on the importance of having a trading plan at the first place!
Here are the 5 basic tasks necessary to become a winning trader and my personal takes:
1. Develop an analytical methodology
-- For myself, I read fundamental news and run technical analysis
2. Extract a trading plan from this methodology
-- I set up short-term swing trades (1-3 days), always try to pick good entry and exit prices
3. Formulate rules for this plan including money management
-- Take profits while ahead, find the best place to get out on bad trades, not relying on stop loss
4. Back-test the plan over a long period
-- Start trading small positions and allow mistakes
5. Finally, stick to the plan
-- Having confidence and keep practicing till perfect
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