Trading Psychology
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When you lose money as a result of trading, and it's bound to happen more than once, ask yourself these five questions. They will help you get back to a calm state much faster. One of the biggest psychological problems (if not the biggest one) that absolutely all traders face while trading is losing money. Sometimes these losses really are very big and extremely painful. And it does not matter what they are caused by - lack of experience, inattention or a trivial mistake in position calculation. Even if you have done everything correctly, losses can occur. Moreover, just because you seem to have done everything correctly, but still lost money as a result, such losses are perceived by us...
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In our previous article we discussed the issue of choosing a trading strategy based on a trader's psycho-type. Now, as an extension of the topic, let's see what happens if you do nothing of the above and trade anything and everything without taking your own psychological peculiarities into account. The typical beginner's way It is a bit sad to write about it, because that is the way most people go. And this despite the fact that tons of materials have been written on this subject. Many of you have probably gone down this path as well, knowing full well that this time it will be different. If you're just beginning to master the profession of a trader, I hope that after reading this article you'll be able to...
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Almost every trader with whom I have worked or just communicated has started his way in this profession "backwards". We humans are strange creatures. For some reason we must try everything, collect all knocks and bumps, and only then listen to a voice of reason and opinion of professionals. For most people the way to become a trader is too difficult. That's why many beginning traders give up and go back to their old occupations and sources of income. That's why the number of successful traders who have realized their dream is so small. But you should agree that in other areas there are also not a large number of those who stubbornly pursued their dream, without...
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In the previous article, we discussed techniques and fast, effective tools for trader self-development. In this one we will talk about the practical application of these tools. A lot of unreasonable trades Let's say we know a trader who is struggling with the problem of impulse trading. He or she has a general idea about the trading plan, strategy and trading system. However, he constantly opens a lot of trades that do not meet his trading criteria. Financially, it costs him quite a lot and causes considerable damage to the deposit. How can such a trader help himself/herself at least to relieve the problem? To begin with, let us remind you that methods of rapidly changing problematic behavioral patterns are effective only...
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My work with traders as a psychologist is aimed not only at changing the model of thinking and, as a consequence, the model of human behavior. In addition, a huge, if not the main part of my work is focused on teaching traders the skill of "being their own psychology consultant". The purpose of such work is to give the trader the necessary knowledge and skills to effectively help himself later on. To relieve him from the need to constantly work with a psychologist, relying on someone else's help. Gradually, with practice, almost any trader can learn psychological methods and techniques with the help of which he will examine his own behavior, give him an objective assessment and, if necessary, make the necessary...
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You may think of yourself as a rational being, but in fact everything you do in life is determined by your emotions. Emotions upset you, drive you psychologically, intimidate you, or inspire you. They motivate your decisions, drive you to action, or paralyze you in a state of anxiety, stress, and fear. They are also the basis of your best memories. In this article, we'll look at four basic principles for dealing with your emotions, as well as three strategies for dealing with the influx of intense feelings such as anxiety, anger and sadness. Emotions are fluid You may feel anxious, feel angry the next second, and then you may be...
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Everyone has their own superstitions and omens. Some people go around the block if a black cat crosses the road, some are afraid of dropping a fork or spilling salt, etc. And you can't even imagine how many of these "worries" stock and currency traders have! 1. A common amulet that attracts money is money - certain coins and banknotes. For example, in Russia, such an amulet has always been a nickel. In Germany, it is believed that financial well-being brings a bent coin or a coin with a hole in the middle. In the U.S., an amulet that attracts money, is considered the first earned dollar. In the offices of many wealthy investors and stockbrokers...
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Why do successful traders turn into bankrupts? Is it just the result of a few unsuccessful trades or is it somehow related to the general problems of intraday trading and is the natural end of any speculator's career? Before I try to answer these questions, I would like to explain where I got them: For almost nine years now I have been working as a coach and later as a psychologist with a number of small but quite stable private financial-investment funds. I am not a trader. But my work forces me to communicate with traders almost daily. At one time I also studied trading on financial and stock markets and listened to the advice of professional traders.
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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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