SYDNEY, AUSTRALIA -- (Marketwire) -- 01/28/13 -- City Index Australia: It's often quoted that a trader's worst enemy is himself. And for the most part, it's true.

Fundamentally speaking, there are three main ways that a trader can keep his mental faculties in check.

Don't be scared.

Fear of losses is a huge part of trading psychology, and the quicker you can learn to overcome it, the better it will be for your profit and loss figures. Let the market do its thing, you can never change it. The key to successful trading is managing risk. Don't be greedy.

Greed is one of the deadliest sins of trading. You'll say things to yourself like "If I'd just held that position a little bit longer," and "I should have gone in stronger on that trade." These thoughts are recipes for disaster. Don't get seduced by gains that aren't there. Have clear profit targets and NEVER risk more than you can comfortably afford.

Be yourself.

Don't listen to that guy who's whispering in your ear about an upcoming market move. He knows as much as you do about what the market is going to do. Only the market knows how and when it will make its move. Have a personality, and trade how you feel is best. Even if you lose out, at least you know you have yourself to blame.

Trading in CFDs involves significant risk and potential exposure to substantial loss. CFD trading can result in losses that exceed your initial investment and CFD investors do not own or have any rights to underlying assets. Investing in CFDs is not suitable for all investors and CFD trading is not likely to meet the investment objectives, needs and risk profile of most retail investors. You should seek independent advice to ensure that you understand the risks before you trade in CFDs. This advertisement contains general information only and does not take your objectives, financial situation, or needs into account. You should consider our PDS available at www.cityindex.com.au before you make any investment decision. City Index Australia Pty Ltd ACN 141 774 727, AFSL 345646 is the CFD issuer and its CFDs are traded off exchange. City Index Australia Pty Ltd may take the opposite side of your trade as part of its market risk management.

Add to Digg Bookmark with del.icio.us Add to Newsvine