Psychology in Trading

As you saw with Position Sizing, you can also decide the allocation of your money for various asset classes, also known as Asset Allocation. Asset allocation is the way you divide your portfolio among asset classes David CarliI am a macroeconomic and financial analyst with over 30 years’ experience, including two years as a fund manager. I specialise in currencies and commodities, and I am the author of several successful books on trading, macroeconomics, and financial markets.

Asset allocation is a critical component of investing success. Both research and academic studies demonstrate that asset allocation is the single most significant factor in determining your financial David CarliI am a macroeconomic and financial analyst with over 30 years’ experience, including two years as a fund manager. I specialise in currencies and commodities, and I am the author of several successful books on trading, macroeconomics, and financial markets.

Let us now look at the first steps you have to take to begin building an action plan that has a strict set of rules. The first thing you have to decide is the percentage of money to allocate to each trade (position David CarliI am a macroeconomic and financial analyst with over 30 years’ experience, including two years as a fund manager. I specialise in currencies and commodities, and I am the author of several successful books on trading, macroeconomics, and financial markets.

A trading plan is more than theory — it’s the foundation of discipline. Discover how structure helps you stay focused, objective and consistent over time.

Now, let’s combine all the concepts you saw in the previous posts, in order to perfectly understand how you should organise your trading. Doing this will ensure that your aims are always clear in your mind David CarliI am a macroeconomic and financial analyst with over 30 years’ experience, including two years as a fund manager. I specialise in currencies and commodities, and I am the author of several successful books on trading, macroeconomics, and financial markets.

A strong trading mindset is essential to stay in the game. Training your mind is just as important as learning strategies, especially in stressful market conditions.