Impact Of Organizations Culture Values On Strategic Leadership Management Essay

Effect Of Organizations Culture Values On Strategic Leadership Management Essay Authoritative culture is made by the vital administration gave by an associations organizer or top administration. An associations originator is especially significant in deciding society in light of the fact that the author assigns qualities and the board styles on the association that goes on for quite a while. This might be useful for a specific period however it can likewise be smothering as time goes on. For instance, Walt disneys preservationist impact on the organization he set up proceeded until well after his demise. Directors were reluctant to try different things with new types of diversion since they were apprehensive Walt wouldnt like it. It took the establishment of new administration under Michael Eisner to pivot the companys fortunes and permit it to manage the real factors of the new media outlet condition. The administration style set up by the originator or top administration is transmitted to the companys supervisors, and as the organization develops, it normally draws in new chiefs and workers who share similar qualities. Therefore, a companys culture turns out to be increasingly more particular as its individuals become progressively comparative. The ideals of these mutual qualities and normal culture is that it builds reconciliation and improves coordination among hierarchical individuals. For instance, the regular language that normally develops in an association since individuals share similar convictions and qualities encourages collaboration among administrators. At the point when hierarchical individuals become tied up with social standards and qualities, this dynamic bonds them to the association and builds their duty to discover better approaches to enable it to succeed. The essential responsibilitiy of vital administration is to make and keep up the authoritative attributes that compensate and support aggregate exertion. Maybe the most essential of these is hierarchical culture An authoritative culture speaks to the common feeling of the manner in which we get things done around here, a basic factor in directing everyday conduct and forming a future strategy. Convenient (1986) accepts that it is these last two types of culture, job and errand, which are most every now and again found in associations. Handys classification of sorts of culture is valuable for giving an image of various authoritative societies. It serves to feature both the trouble of plainly characterizing societies and the significant ramifications of the social way to deal with organizations.Organizational Values can assist representatives with discovering importance and reason in their work and connection their individual endeavors to those of the whole organization. Our way of life is the auditorium wherein we play out our lives. It is a significant piece of what our identity is. Robbins (1989) depicts the way of life of an association as playing out various capacities inside the associat ion as follows 1.It gives a limit characterizing job isolating one association from another. 2. It passes on a feeling of personality. 3. It improves social framework soundness. Culture is the social paste that helps hold the association together. 4. It fills in as a sense making and control instrument that aides and shapes the mentalities and conduct of workers. Authoritative culture characterizes the standards of the game. 1.2 Discuss the hierarchical explicit , legitimate , administrative and moral prerequisite effect on vital authority requests. Each organization, business and association should by law have an approach set up, in light of the law in regards to uniformity, decent variety, and segregation they should, inseparably with these, additionally have an arrangement on organization methods of how they are to be executed should a representative wish to bring a protest dependent on any one or these premises. the two approaches must be uninhibitedly accessible to workers, whom ought to be educated regarding their reality accessible as on demand or as a feature of their agreement . The legitimate status of your association may influence how you can utilize various kinds of account. It is along these lines helpful to quickly audit the confinements that distinctive lawful structures force on the utilization of obligation or value money. Numerous social undertakings are organized as organizations restricted by ensure, as this is the most generally utilized structure for an enlisted foundation. 1.3 Evaluate current and rising social concerns and desires affecting on vital initiative in the association In todays serious business atmosphere, it is basic that officials realize how to settle on key choices rapidly and conclusively. Vital choices frequently involve significant dangers and can have long-extend suggestions for the association. In this course, members will figure out how to apply formal dynamic procedures so as to decrease hazard and pick the best game-plan for their association Associations that comprehend the innovative procedure and cultivate this with representatives end up at the highest point of their industry. They realize how to saddle the innovative intensity of their workforce to grow new items and administrations. Imagination, be that as it may, is as much a matter of method as knowledge. 2.Be ready to comprehend key authority styles. 2.1 Evaluate the connection between vital administration and initiative. Key administration is the craft of overseeing representatives in a manner that expands the capability of accomplishing your business targets. Great administrators start with an individual plan and utilize their authority aptitudes to spread it all through the association. One of the significant perspective in vital managemement is Evaluation and control.It comprises of execution information and action reports .The data must be applicable whatever is being observed, one of the boundaries to successful control is the trouble in creating fitting proportions of significant exercises and yield. Administration has been portrayed as the procedure of social impact in which one individual can concentrate on the guide and backing of others in the achievement of a typical errand. Supervisors have subordinates By definition, supervisors have subordinates except if their title is privileged and given as a characteristic of status, in which case the title is a misnomer and their control over others is other than formal position. Tyrant, value-based style Chiefs have a place of power vested in them by the organization, and their subordinates work for them and to a great extent do as they are told. The board style is value-based, in that the director instructs the subordinate, and the subordinate does this not on the grounds that they are a visually impaired robot, but since they have been guaranteed a prize (at least their compensation) for doing as such. Work center Chiefs are paid to complete things (they are subordinates as well), frequently inside close limitations of time and cash. They along these lines normally give this work center to their subordinates. Look for comfort A fascinating examination finding about supervisors is that they will in general originate from stable home foundations and drove moderately ordinary and agreeable lives. This leads them to be generally hazard disinclined and they will look to keep away from strife where conceivable. Regarding individuals, they by and large prefer to run a cheerful boat. Pioneers have adherents Pioneers don't have subordinates in any event not when they are driving. Numerous authoritative pioneers do have subordinates, yet simply because they are additionally chiefs. Be that as it may, when they need to lead, they need to surrender formal tyrant control, on the grounds that to lead is to have supporters, and following is consistently an intentional action. Appealling, transformational style Guiding individuals doesn't rouse them to tail you. You need to speak to them, indicating how tailing them will prompt their hearts want. They should need to tail you enough to stop what they are doing and maybe stroll into potential harm and circumstances that they would not regularly consider gambling. Individuals center Albeit numerous pioneers have a magnetic style somewhat, this doesn't require an uproarious character. They are in every case great with individuals, and calm styles that offer credit to other people (and assumes fault on themselves) are viable at making the steadfastness that extraordinary pioneers incite. 2.2 Evaluate the authority styles and their effect on dynamic. Authority Styles Rao (1986) has ordered the initiative styles, based on the prior exploration at the Indian Institute of Management, into the accompanying: A Benevolent or Paternalistic administration style in which the top level supervisor accepts that every one of his representatives ought to be continually guided rewarded with friendship like a parent treats his youngsters, is relationship arranged, relegates assignments based on his own preferences, continually controls them and ensures them, comprehends their necessities, rescues the circumstances of emergency by dynamic inclusion of himself, disperses prizes to the individuals who are steadfast and respectful, shares data with the individuals who are near him, and so on A Critical administration style is portrayed as nearer to Theory X conviction design where the supervisor accepts that representatives ought to be intently and continually administered, coordinated and helped to remember their obligations and duties, is transient objective arranged, can't endure missteps or clashes among representatives, individual force commanded, hushes up about all data, works carefully as per standards and rules and guidelines and is profoundly discipline situated. A Developmental authority style is described as an enabling style, where the top chief has faith in building up the capabilities of his staff, regards them as develop grown-ups, leaves them on their own a large portion of the occasions, is long haul objective arranged, shares data with all to manufacture their abilities, encourages the goals of contentions and slip-ups by the workers themselves with negligible contribution from him. formative style naturally is by all accounts the most wanted association building style. Anyway a few people and a few circumstances require now and again kindhearted and basic styles. A few administrators don't know about the transcendent style they

Galveston County, Texas Essays - Health, Psychiatry, Greater Houston

Galveston County, Texas A. Recognizable proof of Community As per the Census Bureau of 2010, Galveston County has a populace of 291,309 individuals who live inside the locale making this region in the southern Gulf Coast area seventeenth in positioning as indicated by populace. Most inhabitants are between the ages of 35 and 64 with Caucasians standing out at 58%, trailed by Hispanics at 23%, with African Americans trailing at simply 14%. The vast majority of the network has a salaried occupation with the middle family salary coming to around $58,000 every year. In spite of the fact that these numbers may look great, 12.8% of the whole populace lives beneath the destitution run with the littlest populace of the area having the biggest rate underneath the neediness line at 28.5%. Of the area's whole network, about portion of its inhabitants meet all requirements for open help (40%), nonetheless, as indicated by records discharged by looking into the SNAP/Food Stamp Participation report, 10% of the individuals who qualify acknowledge help. The pace of joblessness is practically identical to that of the territory of Texas at 6.9% with simply 0.7% distinction, coming in under the national rate. The greater part of the district's home alumni from secondary school and proceed to acquire their Bachelor's qualification, or far and away superior, an advanced education! This measurement is practically identical to the details of the remainder of the territory of Texas and the nation. Two states detainment facilities exist inside the limits of the district which hold 820 co-ed detainees with the imprisonment rate inside the neighborhood prisons remaining marginally more prominent than that of the state's. Regardless of whether the individuals of Galveston County don't utilize them, amusement offices are broadly available for a more advantageous way of life just as access to new, solid nourishments. Similarly as most inhabitants in the territory of Texas, the drinking rate, physical idleness, and the pace of grown-ups who smoke are practically identical. (QuickFacts, 2013) Wellbeing concerns identifying with ailment managing transferable sicknesses are more noteworthy than Texas' rate. Galveston County is in the base 25% of the considerable number of districts in Texas with the best concerns concentrated on serum lead levels among pediatrics, (8 out of 24 of all the postal districts), with incredible worries over syphilis and varicella trailing. Out of all the Texas regions, Galveston County is positioned second in Mesothelioma withdrawal with malignant growth rates demonstrating to be the most exceedingly terrible out all things considered. Due to this reality, this region shows to have a higher than most death rate with the paces of preterm births, lower than ordinary birth loads, and newborn child mortality supposedly higher than that in the entire of Texas and US. (healthypeople.org, 2013) Occupants with protection are more prominent than the pace of all Texas inhabitants with medical coverage, be that as it may, are no examination with regards to the national normal of guaranteed kids 17 and under. As indicated by the Texas Department of State Health Services of 2012, eight territories of the whole region qualify at MAUs, or Therapeutically Underserved Areas. The majority of the worries of not setting off to the specialist was not identified with cost and was accounted for lower than the normal for Texas with preventable remains as an inpatient was more noteworthy. Galveston County is a governmentally assigned Health Professional Shortage Area, or HPSA, which identifies with essential consideration, and modestly for the dental perspective and emotional well-being suppliers too. (HRSA, 2013) Professionals though parts of social insurance including essential couldn't care less and experts are missing for the whole area, alongside dental specialists to think about oral wellbeing too. Identifying with the psychological well-being network, just 31 authorized psych beds exist for each 100,000 occupants of the whole province, with just seven offices accessible which help with substance misuse. (SAMHSA, 2013) The pace of re-affirmations following 30 days for clinical issues was practically identical with the national normal, in any case, any releases identifying with a surgery or a diabetic patient was more noteworthy than normal. The general agreement inside the region among inhabitants is that acceptable wellbeing originates from great wellbeing practices and bottomless precaution wellbeing administrations and meds. As indicated by WHO 2013, the meaning of wellbeing is a condition of complete physical, mental and social prosperity and not just the nonappearance of malady or ailment. Most of

The Importance of Trading Psychology and Discipline

The Importance of Trading Psychology and Discipline Trading in the financial markets is a highly technical activity. To become successful as a trader, you need good understanding of the financial markets and how they work, you need a good understanding of the companies you trade in, you need the technical expertise to analyze market trends, as well as a great understanding of the factors that move the market.Still, even with all these technical skills, it is impossible to become a successful trader if you lack one key attribute â€" the trading psychology.The trading psychology is basically the right mindset and the ability to think on your feet, remain disciplined and exercise control over your emotions even when the market is going against your expectations.Wondering why I term trading psychology as the most important attribute of a successful trader?Consider the scenario below.A trader is watching the markets waiting for the right moment to get involved. Naturally, our trader is afraid of losing money, so it is understandable that h e is acting a bit cautiously.He waits for a better support line before getting into a trade, but then he misses the entry and the markets take off without him. Nothing to worry about though.He decides to wait a bit and catch the next wave, but because he is afraid of taking risks, he misses the next entry as well. This happens a number of times.While this is happening, our trader is talking to other trader friends and interacting with other traders in various online forums and groups.All the other traders are talking about the great profits they have made in the last couple of weeks, yet our trader has not entered a single trade.The fear of taking risks starts turning into greed. He starts feeling like he is missing out on all the profits others are making, and he starts feeling anxious and kind of frustrated, even if he has not lost any money.To avoid continuing missing out while others are making money, our trader decides to take a risk next time.Driven by greed, he throws all cau tion to the wind and jumps onto what seems to be a promising trend without conducting due diligence.Unfortunately, the markets turn around.Before, he wasn’t losing any money, but now he is, and instead of taking a loss, he decides to hold onto the trade in the hope that the markets will turn around and allow him to recoup the money he has just lost.Unfortunately, the trend continues, and he loses more money. The frustration of losing turns into anger, and he starts thinking of how to recoup all his money.Assuming that the markets cannot go any lower, he decides to put more money into the trade at this point so that he can cancel out his losses and make a tidy profit, because surely, there is no way the prices will keep falling.But as any successful trader knows, the markets are not rational, so the downward trend continues, and our trader ends up losing all his money.Depending on how much money he lost, our trader might even get into depression.The above is a great illustration of how allowing emotions to run amok can make you lose your better judgment and impact your success as a trader.Every successful trader knows that the markets are constantly testing traders, and anyone without the right psychological mindset and the ability to control his emotions will have a hard time making the right decisions.Aside from having the right mindset, traders also need the discipline to stick to their trading plans and strategies regardless of what the market throws at them. The above illustration is just one example of how your psychology can affect your trades.Below are several other trading issues that are usually caused by a trader’s psychology.Not taking loss: The typical reason behind this is usually that the trader is afraid of failure, which puts his ego at stake.Exiting trades too early: This is usually caused by the trader’s need for instant gratification. The trader is anxious and fearful that the position might reverse, so he decides to close the position to relieve the anxiety.Averaging down: This refers to situations where the trader is unwilling to admit that their trade is wrong. Hoping that the trade will come back, the trader adds onto the losing position. This is also caused by the trader’s ego.Wishing and hoping: This manifests itself when traders execute trades based on their hopes and wishes, rather than following the market situation.Compulsive trading: This happens when a trader gets addicted to trading, in similar fashion to how gamblers get addicted to gambling.Feeling invincible: After a series of winning trades, some traders might feel like they are invincible and in control of the markets. This often leads to risky trades.Second guessing your signals: This is often caused by the fear of failure and the fear of being wrong. Traders who second guess their signals usually have a hard time accepting that loss is a natural part of trading.Trading a large position size: This is often caused by the disillusionment that a trade can only turn out to be profitable, as well as poor risk management.Excessive trading: This is caused by greed, and a need to conquer the market. It can also be caused by anger, when a trader is trying to make up for previous losses.Being afraid to enter positions: This is usually caused by fear of failure, risk averseness, need for control fear of being ridiculed, or lack of a trading system.There are many more trading issues that are caused by the trader’s psychology, but these are by far the most common.When going through the above situations, you might have noticed that majority of psychology related issues are usually caused by three emotions â€" fear, greed and anger.These three emotions play a very significant role in a trader’s psychology, and any successful trader must learn how to put them in check.Let’s take a look at how these emotions might affect your trade.FEARFear is a natural human reaction to anything perceived as a threat â€" in the case of trading, t he threat is the possibility of losing money.The larger the potential loss, the bigger the amount of fear experienced. Fear during trading manifests itself in a number of ways.The most common manifestation of fear is being too afraid to get involved.Like our trader from the example up above, your fear of losing money makes you too cautious, and as a result, you end up missing all your entries.While being cautious is an important trait, being overly cautious to the extent of missing all your entries turns into a disadvantage, because you are not going to make any money in the market unless you actually get into trades.Sometimes, the fear might come when you have already entered a position.Some breaking news about the stock you are trading or the general market might cause a temporary movement in the market.In such situations, a fearful trader might be compelled to exit the position before their preplanned exit to avoid losing money.While such a fear-driven exit will help you avoid ce rtain loss, it also prevents you from making gains once the market recovers from the temporary volatility caused by the news.Alternatively, someone might exit a position early because they are afraid of holding a position for more than a day.The first key to overcoming fear as a trader is to understand that losing is a natural part of trading.It is impossible to trade without losing. Even the most successful traders experience losses from time to time.You can think of loss as the cost of doing the trading business.Once you understand that losing is a natural part of trading, your perspective changes from being afraid of loss to trying to manage your losses.One of the best ways to overcome fear by managing loss is to have a trading strategy. If you trade without a strategy, you are more likely to be swayed by your emotions.Having a strategy, on the other hand, keeps you grounded even when the markets seem to be going against you.For instance, if your strategy wins 70% of the time, yo u will be expecting a few losses here and there.Therefore, having one or two losing trades will not cripple you with fear, because you will be comfortable with such losses.Another way to overcome your fear is to start slowly and gradually build your trading experience. Instead of leaping into the waters hoping to make big bucks, start with stocks that have slow and small movements, and only trade small position sizes.As you get continue trading, you will gain a better understanding of the markets and what to expect, which will make you less fearful once you decide to start taking bigger and bigger risks.GREEDGreed is the opposite of fear.Whereas fear keeps you from trading or causes you to exit out of positions early because so as to avoid loss, greed pushes you into risky trades and causes you to hold positions for longer than you planned to with the hope of making huge gains.Greed is often caused by the fear of missing out (FOMO). This usually happens in one of two ways. The first one is where you see other people making huge gains in the market while you haven’t made any significant gains.In order not to miss out on the gains others are making, you abandon your trading strategy and enter trades at the wrong time.Alternatively, FOMO might also come into play when the market exceeds your expectations.A trend continues beyond your planned take profit levels, and instead of taking profit, you discard your strategy and continue holding the position because you are afraid of leaving more profits on the table.Unfortunately, if the markets reverse, all the gains you had made can easily get wiped out in a matter of seconds.As a trader, overcoming greed can be quite challenging, because it is often caused by the drive to do a little better or make slightly bigger gains.However, there are two main approaches to overcoming greed.The first one is to stop concerning yourself with what your friends and other traders are doing or the huge gains they are making.As a trade r, all your focus should be on your own trades and your own results.You should be driven by the desire to improve your trading strategy, rather than the desire to make what others are making.The second one is to have the discipline to stick to your plan.When coming up with a trade plan, there are no emotions involved. Instead, most traders come up with a trade plan based on a careful and rational analysis of the market.While it is definitely tempting to put aside the plan when things seem to be going well for you, if you want to become a successful trader, your best bet is to stick to the plan, learn what you can from the experience of leaving money on the table, and then put that new knowledge into consideration when coming up with a plan for your next trade.This way, you will gradually improve your trading strategy while at the same time learning to overcome your greed.ANGERThis emotion rears up its ugly head when you have been unable to control the other two emotions, resulting i n your trades going against your expectations. You start feeling frustrated.Anger is almost always targeted at something or someone â€" in this case, anger is usually targeted at the market. In a bid to get back at the market, angry traders will often find themselves engaging in revenge trading.For instance, let us assume that a trader is in a winning trade that has already reached the trader’s planned take profit point.However, due to inability to control his greed, instead of taking profit, the trader decides to continue holding the trade in the hopes of hitting a home run.Unfortunately, the market reverses and all his gains are wiped out.At this point, he is back to where he started. While the gains he had initially made have been wiped out, he still hasn’t made any loss.The thought of all the gains he had and failed to take, however, makes him angry and frustrated.Instead of closing the trade at this point, he might decide to wait for the market to reverse again so that he c an at least close with a slight profit.Unfortunately, this doesn’t happen, and his trade now goes into loss.Some traders might get off at this point, while others might even average down in the hope of recouping their losses, which will most likely lead to even greater losses.The key to preventing anger is to stick to your plan. Not only does this give you control over the other two emotions that lead to anger when they spin out of control, it also prevents you from making a mistake such as averaging down.HOW TO IMPROVE YOUR TRADING PSYCHOLOGY AND DISCIPLINEMost novice traders like to think that they are rational beings who will trade solely based on data and facts. As we have already seen, however, this is rarely the case.Unless you are not human, emotions will always come in and try to cloud your better judgment.The key to becoming a successful trader is to improve your trading psychology and discipline so that you can minimize the effect of emotions on your trading.Below, we ta ke a look at tips that will help you improve your trading psychology and discipline.Always Have a PlanIf you want to generate money through trading, you should treat it like a business.Would you invest your capital in a bakery, restaurant, or any other traditional business without a business plan? Probably not. Why then do people get into trading without a plan?If you want to make money with trading and avoid the psychological crunch that comes once the market decides to test you, you should go into every trade with a plan on how you intend to make money.Before getting into the trade, determine your entry point, determine your risk-reward tolerance, and determine how you will exit the trade â€" either through a predetermined profit target or a stop loss.Having a plan not only increases your chances of making money, it also gives you something to fall back on when things start going awry and your emotions start trying to influence your trade.However, having a plan is not all. You als o need to have the discipline to stick to your plan.A plan is absolutely useless if you are not going to follow it.Many are the traders who start with a plan only to abandon it when their emotions get into the picture.Therefore, you should make a commitment to yourself that you will stick to your plan no matter what happens in the market.This is one of the best ways of strengthening your trading mentality.Be Prepared to LoseRegardless of how good you are and how much analysis you have done, you can never be 100% certain how the trade will go.Therefore, as much as you want your every trade to be a winning trade, you should be prepared to lose.Before getting into the trade, take a moment to think about everything that could go wrong. Doing this has two advantages.First, thinking of all possible ways the trade could go wrong allows you to come up with a detailed plan on what to do in case this happens.Therefore, instead of having knee-jerk reactions when things don’t go as expected, you will already have thought about what to do in such cases.For instance, if the market is on an upward trend, before getting in, you should think about what point you will cut your losses in case the market reverses just after you enter a position.Second, thinking about losing gives you the opportunity to consider how it might feel in case your trade turns out to be a loser.This way, if the trade goes awry, your emotions won’t catch you unawares.Instead, you will already know what emotions to expect and will be better prepared to keep these emotions in check.Research Continuously to Increase Your Knowledge BaseConstantly increasing your knowledge is one of the best ways of improving your trading psychology.The more you know about the markets and their behavior, the better you will become at making decisions and navigating any curve balls that the markets might throw your way.When faced with a situation you have never experienced before, you are more likely to react to it calmly if you had read about it the week before.On the other hand, a trader realizing for the first time that such situations exist when there money is at stake is more likely to react with panic.Practice ContinuouslyThe popular saying that practice makes perfect is popular because it is true.No matter how much research you do, you are unlikely to learn everything about the market by research alone.The only way to learn about the market and what to expect from it is to trade and learn by yourself.In addition, practicing allows you to try what you have learnt. Think of it like riding a bicycle.No matter how much you read about riding a bicycle, the only way to learn to actually ride is to get on a bicycle and give it a try.Similarly, regardless of how much research you do, the only way to actually improve your trading psychology is to put what you learn into practice.Fortunately, many trading platforms and brokers provide demo accounts that allow you to practice without risking real money.W RAPPING UPWhile having the technical knowhow of trading is important, your trading psychology and discipline is equally important.Regardless of how much you plan and perform market analysis, not having control over emotions such as fear, greed and anger can easily lead you to abandon your trading plan and make poor decisions.This is why developing the right trading psychology and discipline is very critical to your success as a trader.Fortunately, you now know how the mental aspect of trading affects your career as a trader, and what to do in order to develop the right trading psychology.

The Importance of Trading Psychology and Discipline

The Importance of Trading Psychology and Discipline Trading in the financial markets is a highly technical activity. To become successful as a trader, you need good understanding of the financial markets and how they work, you need a good understanding of the companies you trade in, you need the technical expertise to analyze market trends, as well as a great understanding of the factors that move the market.Still, even with all these technical skills, it is impossible to become a successful trader if you lack one key attribute â€" the trading psychology.The trading psychology is basically the right mindset and the ability to think on your feet, remain disciplined and exercise control over your emotions even when the market is going against your expectations.Wondering why I term trading psychology as the most important attribute of a successful trader?Consider the scenario below.A trader is watching the markets waiting for the right moment to get involved. Naturally, our trader is afraid of losing money, so it is understandable that h e is acting a bit cautiously.He waits for a better support line before getting into a trade, but then he misses the entry and the markets take off without him. Nothing to worry about though.He decides to wait a bit and catch the next wave, but because he is afraid of taking risks, he misses the next entry as well. This happens a number of times.While this is happening, our trader is talking to other trader friends and interacting with other traders in various online forums and groups.All the other traders are talking about the great profits they have made in the last couple of weeks, yet our trader has not entered a single trade.The fear of taking risks starts turning into greed. He starts feeling like he is missing out on all the profits others are making, and he starts feeling anxious and kind of frustrated, even if he has not lost any money.To avoid continuing missing out while others are making money, our trader decides to take a risk next time.Driven by greed, he throws all cau tion to the wind and jumps onto what seems to be a promising trend without conducting due diligence.Unfortunately, the markets turn around.Before, he wasn’t losing any money, but now he is, and instead of taking a loss, he decides to hold onto the trade in the hope that the markets will turn around and allow him to recoup the money he has just lost.Unfortunately, the trend continues, and he loses more money. The frustration of losing turns into anger, and he starts thinking of how to recoup all his money.Assuming that the markets cannot go any lower, he decides to put more money into the trade at this point so that he can cancel out his losses and make a tidy profit, because surely, there is no way the prices will keep falling.But as any successful trader knows, the markets are not rational, so the downward trend continues, and our trader ends up losing all his money.Depending on how much money he lost, our trader might even get into depression.The above is a great illustration of how allowing emotions to run amok can make you lose your better judgment and impact your success as a trader.Every successful trader knows that the markets are constantly testing traders, and anyone without the right psychological mindset and the ability to control his emotions will have a hard time making the right decisions.Aside from having the right mindset, traders also need the discipline to stick to their trading plans and strategies regardless of what the market throws at them. The above illustration is just one example of how your psychology can affect your trades.Below are several other trading issues that are usually caused by a trader’s psychology.Not taking loss: The typical reason behind this is usually that the trader is afraid of failure, which puts his ego at stake.Exiting trades too early: This is usually caused by the trader’s need for instant gratification. The trader is anxious and fearful that the position might reverse, so he decides to close the position to relieve the anxiety.Averaging down: This refers to situations where the trader is unwilling to admit that their trade is wrong. Hoping that the trade will come back, the trader adds onto the losing position. This is also caused by the trader’s ego.Wishing and hoping: This manifests itself when traders execute trades based on their hopes and wishes, rather than following the market situation.Compulsive trading: This happens when a trader gets addicted to trading, in similar fashion to how gamblers get addicted to gambling.Feeling invincible: After a series of winning trades, some traders might feel like they are invincible and in control of the markets. This often leads to risky trades.Second guessing your signals: This is often caused by the fear of failure and the fear of being wrong. Traders who second guess their signals usually have a hard time accepting that loss is a natural part of trading.Trading a large position size: This is often caused by the disillusionment that a trade can only turn out to be profitable, as well as poor risk management.Excessive trading: This is caused by greed, and a need to conquer the market. It can also be caused by anger, when a trader is trying to make up for previous losses.Being afraid to enter positions: This is usually caused by fear of failure, risk averseness, need for control fear of being ridiculed, or lack of a trading system.There are many more trading issues that are caused by the trader’s psychology, but these are by far the most common.When going through the above situations, you might have noticed that majority of psychology related issues are usually caused by three emotions â€" fear, greed and anger.These three emotions play a very significant role in a trader’s psychology, and any successful trader must learn how to put them in check.Let’s take a look at how these emotions might affect your trade.FEARFear is a natural human reaction to anything perceived as a threat â€" in the case of trading, t he threat is the possibility of losing money.The larger the potential loss, the bigger the amount of fear experienced. Fear during trading manifests itself in a number of ways.The most common manifestation of fear is being too afraid to get involved.Like our trader from the example up above, your fear of losing money makes you too cautious, and as a result, you end up missing all your entries.While being cautious is an important trait, being overly cautious to the extent of missing all your entries turns into a disadvantage, because you are not going to make any money in the market unless you actually get into trades.Sometimes, the fear might come when you have already entered a position.Some breaking news about the stock you are trading or the general market might cause a temporary movement in the market.In such situations, a fearful trader might be compelled to exit the position before their preplanned exit to avoid losing money.While such a fear-driven exit will help you avoid ce rtain loss, it also prevents you from making gains once the market recovers from the temporary volatility caused by the news.Alternatively, someone might exit a position early because they are afraid of holding a position for more than a day.The first key to overcoming fear as a trader is to understand that losing is a natural part of trading.It is impossible to trade without losing. Even the most successful traders experience losses from time to time.You can think of loss as the cost of doing the trading business.Once you understand that losing is a natural part of trading, your perspective changes from being afraid of loss to trying to manage your losses.One of the best ways to overcome fear by managing loss is to have a trading strategy. If you trade without a strategy, you are more likely to be swayed by your emotions.Having a strategy, on the other hand, keeps you grounded even when the markets seem to be going against you.For instance, if your strategy wins 70% of the time, yo u will be expecting a few losses here and there.Therefore, having one or two losing trades will not cripple you with fear, because you will be comfortable with such losses.Another way to overcome your fear is to start slowly and gradually build your trading experience. Instead of leaping into the waters hoping to make big bucks, start with stocks that have slow and small movements, and only trade small position sizes.As you get continue trading, you will gain a better understanding of the markets and what to expect, which will make you less fearful once you decide to start taking bigger and bigger risks.GREEDGreed is the opposite of fear.Whereas fear keeps you from trading or causes you to exit out of positions early because so as to avoid loss, greed pushes you into risky trades and causes you to hold positions for longer than you planned to with the hope of making huge gains.Greed is often caused by the fear of missing out (FOMO). This usually happens in one of two ways. The first one is where you see other people making huge gains in the market while you haven’t made any significant gains.In order not to miss out on the gains others are making, you abandon your trading strategy and enter trades at the wrong time.Alternatively, FOMO might also come into play when the market exceeds your expectations.A trend continues beyond your planned take profit levels, and instead of taking profit, you discard your strategy and continue holding the position because you are afraid of leaving more profits on the table.Unfortunately, if the markets reverse, all the gains you had made can easily get wiped out in a matter of seconds.As a trader, overcoming greed can be quite challenging, because it is often caused by the drive to do a little better or make slightly bigger gains.However, there are two main approaches to overcoming greed.The first one is to stop concerning yourself with what your friends and other traders are doing or the huge gains they are making.As a trade r, all your focus should be on your own trades and your own results.You should be driven by the desire to improve your trading strategy, rather than the desire to make what others are making.The second one is to have the discipline to stick to your plan.When coming up with a trade plan, there are no emotions involved. Instead, most traders come up with a trade plan based on a careful and rational analysis of the market.While it is definitely tempting to put aside the plan when things seem to be going well for you, if you want to become a successful trader, your best bet is to stick to the plan, learn what you can from the experience of leaving money on the table, and then put that new knowledge into consideration when coming up with a plan for your next trade.This way, you will gradually improve your trading strategy while at the same time learning to overcome your greed.ANGERThis emotion rears up its ugly head when you have been unable to control the other two emotions, resulting i n your trades going against your expectations. You start feeling frustrated.Anger is almost always targeted at something or someone â€" in this case, anger is usually targeted at the market. In a bid to get back at the market, angry traders will often find themselves engaging in revenge trading.For instance, let us assume that a trader is in a winning trade that has already reached the trader’s planned take profit point.However, due to inability to control his greed, instead of taking profit, the trader decides to continue holding the trade in the hopes of hitting a home run.Unfortunately, the market reverses and all his gains are wiped out.At this point, he is back to where he started. While the gains he had initially made have been wiped out, he still hasn’t made any loss.The thought of all the gains he had and failed to take, however, makes him angry and frustrated.Instead of closing the trade at this point, he might decide to wait for the market to reverse again so that he c an at least close with a slight profit.Unfortunately, this doesn’t happen, and his trade now goes into loss.Some traders might get off at this point, while others might even average down in the hope of recouping their losses, which will most likely lead to even greater losses.The key to preventing anger is to stick to your plan. Not only does this give you control over the other two emotions that lead to anger when they spin out of control, it also prevents you from making a mistake such as averaging down.HOW TO IMPROVE YOUR TRADING PSYCHOLOGY AND DISCIPLINEMost novice traders like to think that they are rational beings who will trade solely based on data and facts. As we have already seen, however, this is rarely the case.Unless you are not human, emotions will always come in and try to cloud your better judgment.The key to becoming a successful trader is to improve your trading psychology and discipline so that you can minimize the effect of emotions on your trading.Below, we ta ke a look at tips that will help you improve your trading psychology and discipline.Always Have a PlanIf you want to generate money through trading, you should treat it like a business.Would you invest your capital in a bakery, restaurant, or any other traditional business without a business plan? Probably not. Why then do people get into trading without a plan?If you want to make money with trading and avoid the psychological crunch that comes once the market decides to test you, you should go into every trade with a plan on how you intend to make money.Before getting into the trade, determine your entry point, determine your risk-reward tolerance, and determine how you will exit the trade â€" either through a predetermined profit target or a stop loss.Having a plan not only increases your chances of making money, it also gives you something to fall back on when things start going awry and your emotions start trying to influence your trade.However, having a plan is not all. You als o need to have the discipline to stick to your plan.A plan is absolutely useless if you are not going to follow it.Many are the traders who start with a plan only to abandon it when their emotions get into the picture.Therefore, you should make a commitment to yourself that you will stick to your plan no matter what happens in the market.This is one of the best ways of strengthening your trading mentality.Be Prepared to LoseRegardless of how good you are and how much analysis you have done, you can never be 100% certain how the trade will go.Therefore, as much as you want your every trade to be a winning trade, you should be prepared to lose.Before getting into the trade, take a moment to think about everything that could go wrong. Doing this has two advantages.First, thinking of all possible ways the trade could go wrong allows you to come up with a detailed plan on what to do in case this happens.Therefore, instead of having knee-jerk reactions when things don’t go as expected, you will already have thought about what to do in such cases.For instance, if the market is on an upward trend, before getting in, you should think about what point you will cut your losses in case the market reverses just after you enter a position.Second, thinking about losing gives you the opportunity to consider how it might feel in case your trade turns out to be a loser.This way, if the trade goes awry, your emotions won’t catch you unawares.Instead, you will already know what emotions to expect and will be better prepared to keep these emotions in check.Research Continuously to Increase Your Knowledge BaseConstantly increasing your knowledge is one of the best ways of improving your trading psychology.The more you know about the markets and their behavior, the better you will become at making decisions and navigating any curve balls that the markets might throw your way.When faced with a situation you have never experienced before, you are more likely to react to it calmly if you had read about it the week before.On the other hand, a trader realizing for the first time that such situations exist when there money is at stake is more likely to react with panic.Practice ContinuouslyThe popular saying that practice makes perfect is popular because it is true.No matter how much research you do, you are unlikely to learn everything about the market by research alone.The only way to learn about the market and what to expect from it is to trade and learn by yourself.In addition, practicing allows you to try what you have learnt. Think of it like riding a bicycle.No matter how much you read about riding a bicycle, the only way to learn to actually ride is to get on a bicycle and give it a try.Similarly, regardless of how much research you do, the only way to actually improve your trading psychology is to put what you learn into practice.Fortunately, many trading platforms and brokers provide demo accounts that allow you to practice without risking real money.W RAPPING UPWhile having the technical knowhow of trading is important, your trading psychology and discipline is equally important.Regardless of how much you plan and perform market analysis, not having control over emotions such as fear, greed and anger can easily lead you to abandon your trading plan and make poor decisions.This is why developing the right trading psychology and discipline is very critical to your success as a trader.Fortunately, you now know how the mental aspect of trading affects your career as a trader, and what to do in order to develop the right trading psychology.