What for a conjunction do traders have between their daily trading activities and their unconscious part ( in the modern language and Freud's theory for his psychoanalytic, it is called unconscious, in religious point of view, unconscious belongs to the realm of spirituality, because we are as spiritual beings, so about this part, I will discuss further in the framework of this post. ). So according to Freud's theory he believed that behavior and personality were derived from the constant and unique interaction of conflicting psychological forces that operate at three different levels of awareness: the preconscious, conscious, and unconscious. He believed that each of these parts of the mind plays an important role in influencing behavior.
As traders we all know and experience that we all try to learn the best method of trading, use the best indicator to get the best trading signals for entry and exit; moreover we also try to learn the best money and risk management, we all hear for xyz time about 2% risk max/trade, Elliott wave, Swing trading, 123 trading method, trend following, breakout trading strategy, price action, candlesticks chart reading, market profile, VPA ( Volume price analysis) and lots of other methods for trading have been developed since the online trading appeared, BUT most of traders still fail and lost. Have traders learned the wrong trading methods, or all these methods are actually not really suitable for the trading markets? If so, then why there are still winners there, and what for method do they use to earn the money from the Forex, stocks, futures markets? The winners they use the same methods as we know, but how they apply these methods is a hard process of learning and practice. Through the practice during the time of trading, trader will face with their own problems, so the weak side in themselves like impatience, anxiety, fear, greed etc. in their trading activities, and these affect their trading behaviour. The way to eliminate the impatience, anxiety, fear and greed, there is only one way, namely traders have to codify their trading decisions into rules, and they have to work on these rules strictly.
Why rules are important here to have and what for relation between rules and spirituality? As we know that the markets are constantly changing in a very volatile manner, because of the different opinions of the participants around the global participate into the markets, thus the markets move in motion with different characters, mentalities and traits of the participants. Rules to set is just the first step, but to realize these rules properly, traders need to grow their inner strength, so the strength of belief, so that the spiritual part inside of each of us will be grown time by time; the more our spirituality is growing, the more we will be successful.
To be able to set rules for the trading activities, we have to know firstly about both of our strong and weak sides, knowing about these, you will know how to make rules for yourselves to approach the markets. Your trading methods are the tools to understand the markets, and your rules are the tools to protect yourselves of the market's volatility and unexpected risk. Why rules will protect myself might be the question you concerned about, because as human beings we all have our own personality and traits; these traits are given by nature when we were born; in the trading life, some specific traits are required to have to be successful, but traits could not be taught at any university in the world, therefore trading could also not be taught there as a major faculty, why this is so, you probably know that even the professors also do not have these qualified traits, and traits could not also be given to others like an heir. Therefore, if we are not luckily to own these qualified traits to become a great trader, we have to develop rules to be successful in trading, so that is the reason why we need rules ( but all things under the universes are set with rules, even Satan has also his own rules 🙂
Some characteristic of the strong and weak mentalities and behaviours I will put here as a system in this post thread.