Managing Your Money Series | Key Success Factors of Investing & Trading | Investment Psychology

There are 3 key factors that you need to master in order to be successful in investing and trading.

1. Phycology

2. Money Management

3. Strategy

Do you really need to master all three?

A lot of amateur investors and traders thought they only need to master the strategies.

However, strategy alone will not be able to make you to be successful.

In fact, strategy play the least impact for your success.

The contribution of each factor is as below:

1. Psychology                   - 60%

2. Money Management    - 20%

3. Strategy                       - 10%

Yes, that is correct. Psychology is the most important.

Even the most skilled investors or traders can lose back all his profits because he/she did not manage their psychology well.

It is one thing that people did not put much attention on, which again, causing them a huge lose of money, time and effort.

Poor psychology will cause you wasted opportunities and in some cases, even their entire savings.

It will make you making decision based on emotion and fear, and not based on calculated risk.

This is very danger.

A trader or investor will be able manage their mind well, and will not be influenced by the rumors or news around them without doing the proper study of the investment that they need to make.

It is not uncommon some even caused their lives. Occasionally we heard some cases where people committed suicide, and this is also due to poor psychology.

This topic is so important, yet not many are taking time to talk about it.

What separates amateur and professional investors or traders are their psychology.

Therefore master your psychology in investment and trading.

Happy Investing & Trading! 😉