When embarking on trading many fail to recognise how important trading psychology really is. This is actually an important facet of any trader's skillset and it can end up impacting greatly on whether one manages to succeed or fail. Even if one is really doing his very best in fundamental and technical analysis, and planning to the best of his ability, it will be practically useless unless he is in the right state of mind to make the best decisions. A trader's personality comes into play here. Emotions such as fear and anxiety need to be put in check, while on the other hand overconfidence needs to be avoided too.