What Really is Trading Psychology?

If you try to google on Trading Psychology, it is not hard to find out that most people would tell you that trading is 70% mental, 30% technical.  Generally, I do not deny this fact.  However, I would not concur with those people who are ignorant about trading and push all blames to trading psychology although it is the major component of our trading.

Trading Psychology is a big component and within itself that are a lot more sub components.  And what directly impacts the various sub components is our trading skills.  Our skills of analyzing the charts, finding the right basis, understanding the market reaction, identifying the right risks to take, applying the right thought process and managing the trade when we are in position, etc.  These skills require time to develop and is not based on any so called "high success" rate strategies.  Success rate depends on the trader's ability to decide when to take on trade and how he or she manage it along the way.  It is the decision points that make a difference to where the trade is a success or failure and how much would it contribute to the trader's bottom line.

And the basis of all these decisions is the trader's skills and experience.  If someone were to tell you trading is 70% psychological and to improve your trading by focusing on your psychology, that is a con man.  That man is definitely NOT a trader.  A real trader knows what it take to become a trader.  A person who tries to teach you to trade while he is not a trader is a con man.