Trading Psychology
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If you have never meditated before, then at least read this text to the end and then decide whether you need it or not. However, it is safe to say that a large number of traders practice meditation systematically and consider it the best way to restore emotional balance. The main problem of traders is not a strategy or a trading system. The main challenge is learning to stay emotionally detached from the course of trading and its results. Tormented by their eternal enemies, fear and greed, traders lose the ability to remain psychologically detached from their trades. The main advantage of meditation is the creation of a clear and calm mind,...
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Do you ever feel like there are some compulsive tendencies in your trading that might be slowing you down on the road to success? Or maybe your compulsive trading behavior has started to affect your financial situation and psychological state? Human psychology plays an important role in trading. Not surprisingly, those psychological traits that affect people in normal life will also determine their behavior in trading. They will either help you become a professional or break you as a trader. What is obsessive-compulsive disorder (OCD)? Obsessive-compulsive disorder (OCD) is a type of anxiety disorder. It is typically characterized by unreasonable, intrusive thoughts and irrational fears (obsessions, obsessions), on...
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Controlling Your Emotions While Trading In fact, it may seem funny. Throughout our childhood and much of our youth, we learn to recognize our emotions, especially strong ones, and express them appropriately. We learn this from our parents, our teachers, our peers and even our idols by observing, comparing, memorizing and repeating them. Moreover, the inability to freely express our own emotions and recognize others' is called alexithymia and is considered an aberration. I think that most people, when they enter the world of trading, sincerely believe that they can manage their emotions at least to some extent. Why, then, is the reality...
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The final three important tips about a trader's mental toughness. We already talked about consistency, patience and understanding what the market is in the first and second parts of this article. Let's see what other skills we will need to improve as a trader. 7. Think more about the process of trading than the end result This is a very important point - your overall emotional background largely depends on it. You must be able to distance yourself from the results of each trade, paying attention to the technical aspects of the work. This will allow you to psychologically and emotionally detach yourself from the market, keeping your emotions under control, and at the same time remain calm and focused on your long-term goals,...
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We continue to discuss 9 tips for the trader to trade without emotion. We discussed the first 3 tips in the previous article. 4. Be patient Not every day is a trading day. Know how to wait for the most accurate moment to enter the market, which will best fit your trading system and strategy. Keep in mind that over-trading leads to fatigue, decreased concentration, and, consequently, to losses. You can be overexcited by the desire to succeed immediately, and frequent trading will make you feel involved in the process, belonging to the market, but it will negate all of your long-term plans. Even if occasional trades are profitable, they won't...
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Trading is first and foremost a business. But if in any other business emotional decisions are simply harmful, in trading they can lead to disaster. If you take a closer look at the people who have achieved considerable success in this business, you will notice some common mental traits that unite all of them. A trader needs to develop certain personal qualities and thinking styles which will allow him or her to remain calm and confident in his or her actions while trading. It is these personal qualities that we call the "psychology of a successful trader". The biggest obstacle on your way to success in your chosen business is not the market or the broker, but you yourself....
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[info_block align="right"]The CBT technique focuses on the present and what exactly you are able to change right now, in the present moment, instead of worrying about the past or future.[/info_block] In the previous article about cognitive behavioral therapy and its application to trading, it was said that by considering and assessing one's strengths and weaknesses, a trader with cognitive behavioral therapy (CBT) can shift the focus to positive attitudes instead of negative ones. Specifically, specific examples were discussed where, instead of having destructive thoughts about their trading, a person could develop a new, much more productive behavioral model and put it into practice, thus changing their behavior and, as a consequence,...
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Cognitive Behavioral Therapy or How a Trader Changes Himself Cognitive Behavioral Therapy (CBT). We usually hear the term from psychologists who help patients overcome a variety of anxiety and other personality disorders. But CBT can be useful for anyone who wants to make adjustments to their behavior. Here are some variations of negative behaviors that you can change as they relate to trading: Inconsistent trading; Violation of trading system rules; Failure to follow trading plan with money management plans; Lack of trading discipline; Emotional trading; Impulsive trading, over-trading; Failure to follow money management rules. One should not think that nothing of the above can be changed in a person. It is not. For this there are...
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[info_block align="right"]Markets are a reflection of you, and you are a reflection of the markets.[/info_block] Intraday trading is an activity that is somewhat akin to a high performance sport. In particular, they are similar to the high intensity of loads during the trading day, when we are required to process and analyze huge amounts of information with maximum speed and efficiency and at the same time remain calm and dispassionate. Buddha will speed your way to a million We all know that ideally we should keep our minds sharp and clear at all times, staying as focused and disciplined as possible and perceiving things objectively. After all, during the trading day you need to monitor the changing situation almost every second and choose what...
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Today I will consider the problem of trader's psychology when choosing a broker. We will talk about how to avoid all the marketing traps and increase the deposit or at least save it. What do traders face when choosing a broker? So, when a trader decides to earn at the market, he needs an intermediary, which gives him access to this very market, i.e. a broker. It is a difficult task both for a beginner and an experienced trader, because the abundance of well-thought-out promises of easy enrichment, which press on the most subconscious emotions, is off the scale. Here the experienced trader has a small advantage - he doesn't hurry to believe the promises, but carries out a certain verification. But about this later....
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Many traders wonder what time it's better to trade in order to take profit confidently and regularly increase the deposit. When our brain functions best and gives the maximal concentration - in the morning, in the afternoon, in the evening or at night? You will learn about this when you read to the end of this article. I think that everyone understands very well that the best time for trading is determined individually, because trading itself, that is, the rise or fall in prices of financial assets does not jump higher at any particular time of the day. The question is the trader. So I want to share my vision of when it is better to trade and earn, and when to stay away from the terminal. Do we have to trade...
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If you made a decision to become a trader and stepped on the path of mastering this profession, then no matter which direction in trading you prefer - intraday trading on the market or stock trading on the stock market, you will be faced with a choice in any case: To be free - one who can learn from others, adopt experience, master other people's trading strategies, but ultimately, relying on the knowledge gained, creating and inventing his own trading methods, taking personal responsibility for his own successes and failures. or Depend on others - to be someone who does not try to learn how to trade on his own, but relies only on suppliers...
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The currency market is often compared to a sport - a trader needs to always be in shape, maintain and improve results, train and try new methods and strategies. It is impossible to be successful on the currency market, working from 8 to 5 and acting without a bit of creativity and desire to develop. It often happens that the market situation seizes the trader - the profitable series is replaced by unprofitable one, there come moments of overload and frustration, and simply the fatigue accumulates. At such moments, the main thing is not to relax and not to fall into a tilt. Let's talk about how to configure your work as a trader in such a way that there will be fewer difficult moments and it will be possible to...
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Are you happy with the results? [info_block align="right"]If you work for the process, you will achieve the desired result, not the other way around. [/info_block] Another calendar year is over and it's a great time to stop trading for a while and look back. This means that you need to be as honest with yourself as possible and answer the question: what was this year for me? Am I satisfied with the work I did and the results I got? Can you honestly say that you've made every possible effort to become a really disciplined, consistent and thoughtful trader, or on the contrary, that you've remained an "overextended Vegas player" all year long? Either way, now is the time to get into the...
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The world of trading is a strange space where the average trader is under constant psychological pressure. From various sources, he is bombarded with information that with the help of some "super indicators", "unique trading systems" and author's trading training courses he can achieve success overnight (or, at least, do it in a short period of time), realize his most daring dreams and financial plans. The main idea of all the messages and promises is that trading in the market will set you free financially, socially and professionally. Trading is you, not the market Many traders come into the market and become obsessed with finding 100%-working trading systems...
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[info_block align="right"]When considering various ways to turn a small amount of money into a very large amount of money, stock trading often seems like a quick and easy way to get rich.[/info_block] Almost everyone who touches the world of stock trading, even on a very limited scale, dreams of becoming a full-time professional trader one day. Making a living as a trader is a worthy goal for many talented and hardworking people, so I like to ask leading questions to hopeful and eager newcomers: Why do they want to make stock trading their profession? What underlies this burning desire? What are they looking for in this profession for themselves? Before you are the most popular answers. 1. Quick millions with minimal investment No...
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Emotional intelligence is the main trader's skill that needs to be mastered in order to succeed. Emotional intelligence is a skill that can be mastered Working as a coach, I came to the conclusion that my main task is to teach novice traders certain principles of work that can lead them to consistently profitable trading. Often I receive requests from ambitious speculators who want, with my help, to find one single trading strategy that will make them successful. Unfortunately, I have to disappoint them. Such a strategy simply does not exist. Successful trading on the market requires, first of all, inner equilibrium and self-control from a trader. Undoubtedly, technical aspects of trading strategy are extremely important, but the factor...
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How often do you get out of your comfort zone? In articles about the psychology of trading it is often said that you need to train your mind to the process of trading if you want to be successful. This means that it is necessary to develop appropriate qualities of character, such as: discipline, honesty with yourself and the market, keeping a diary/journal, making a trading plan, risk management. This means the need to think carefully about trading decisions, based on objective and up-to-date information. However, there is one aspect that is often overlooked, despite the fact that it is now extremely popular all over the world - the need to step out of your own comfort zone. Your comfort zone is...
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When you make the final decision to make trading your main profession, you may encounter some difficulties on this fascinating path that you knew nothing about before. And today I would like to talk about such an unpleasant thing as "emotional burnout". There is a difference between stress and burnout, but both deviations are very dangerous. Burnout is a condition in which you completely lose interest in trading due to the accumulation of constant emotional, mental and physical exhaustion. In this case, it is very easy to fall into a vicious circle. While in this state, you make ill-considered decisions which lead to poor trading results, which, in turn, cause even more...
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This year I visited ShowFx World in Kiev and I would like to tell you about the speech of Tom Hugard, one of the most successful traders in a very large hedge fund. I should point out right away that in this article I'm going to quote his words as I understood them for myself. I've realized once again that success in trading is determined by psychology, not by strategy. It's nice to hear another confirmation of my opinion from the lips of a professional of such a level. *The slides used in this article are taken from the author's presentation. Principles of 2% successful traders The first, most important principle that guides successful traders, is to buy the strong and discount the weak. What is this...
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