Skillsfirst Level 5 Diploma in Financial Trading (RQF) - Module 4 - Technical Analysis
Skillsfirst Level 5 Diploma in Financial Trading (RQF) - Module 5 - Psychology
Skillsfirst Level 5 Diploma in Financial Trading (RQF) - Module 6 - Risk and Money Management
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PERSONAL LEVERAGE

Having leverage simply means it is far more important for you to work toward your goals and dreams, than not to. Many of us have habits we’d like to discard, such as overeating or smoking. Why is it so difficult to change self-defeating habits? Because you have created a world wherein your brain believes it is less painful to go with the flow, than to change. Change is difficult and sometimes painful. Many people will go to great lengths to avoid change.

To eliminate a bad habit, such as smoking or a pulling-the-trigger problem, you must create a belief that it will be more painful to continue the way you are, than to take the road less travelled. A trader that cannot execute a trade is not likely to be successful at trading.

Trading systems are designed so that the probability of successful trades and profits outweighs the probability of ruin. A system breaks down if a trader only executes some of the trades, rather than all of them. Cherry picking traders are doomed to fail. Why? Because the markets are random, certain set-ups may work today, but not tomorrow, or this trade may win, but not the next. Your mathematical probability of success is unlikely without consistency. Each time our cherry-picking trader experiences a loss, it becomes more painful, until they reach a point where it is impossible to take any trades at all.

Remember: Your ability to take action is not based on your skill or knowledge level, but on your emotional state at that exact moment. Avoid powerlessness, you are in control, you feel powerful, and you can and will easily take action.

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