Trading Psychology
We are not psychologists nor do we have any clinical or academic background in psychology.
Further, what's presented to you is via our own research, trading experience, discussions and writings with other successful Emini Futures traders along with those that have failed at trading.
First of all, your daily routine should include good nutrition, exercises, relaxation (stress management) and quality time with your loved ones.
Do not underestimate the above because via trading your state of mind will endure constant stress that will be translated into your physical being...therefore you'll need to have a healthy and strong body to absorb that type of stress.
Next...you need to take a deep look into your personal life and review how your personality or beliefs interacts with the markets...
You'll also need a discussion forum to discuss your trading problems and to gain insight from others with similar like trading problems.
Trader
Psychology |
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Optimizing the Mind Discussions and insights into stress management, effective decision making, conflict management, positive thinking and mind tools for success along the road to profits. |
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Interacting with the Markets A trader’s behavior refers to all the emotional and cognitive factors that may influence his or her trading decisions in relation to the trading strategy, markets and their personal life |
Also, you should read some of the articles or books that's posted below especially if your a trader that has any of the following trading problems...
Ignoring stops, ignoring or hesitating when trade signals appear, trading when there's no trade setups, panicking after a loss, overtrading, over-confidence, lack of confidence, etc.
Simply, if you cannot resolved the above problems by yourself...seek help from either a successful trader, a trader psychologist or psycho-therapist to figure out why your subconscious is preventing you from grasping success.
Remember this...trading is not a war. Thus, to achieve your financial goals...successful trading will require a partnership between your psyche and the markets.
Therefore, educate yourself so that you'll have strategies to strengthen your mind so that it can become a partnership in your financial goals: mind tools, stress management, positive thinking, empowerment and spirituality.
Now...here are some quick and simple tips to help you get started in achieving a successful state of mind for trading:
Most
self-sabotaging emotions can be eliminated via simply having
a well-written trading plan that includes in-depth details and
criteria for each strategy from entry to exit.
Talk to other traders via
live-realtime chat.
Remember this...nobody can help you nor offer you advice if you sit silently with your trading problems.
Start
slow via trading only one
trading instrument...with
the minimum number of contracts or shares
Therefore...don't spread yourself too thin via monitoring too many trading instruments.
Trade
via two repetitive trade setups (strategies) that you feel
comfortable with and have a well-written plan for each
strategy...one Long position strategy and one Short position
strategy...do this until your consistently profitable via
these two trade setups.
This allows a trader to concentrate 100% on a few trade setups and allows a trader to become comfortable with these particular trade setups...
Learning the strengths and weakness of your strategies.
Make
small commitments to improving your mental strength...lasting
no more than a month and reward yourself at the end of the
designated period...take a few days of time-out before
strengthening the next mental aspect of your trading.
Discuss your self-sabotaging behaviors with those that have
not only experience such...but resolved such problems.
Create a daily trading journal that contains info
on how you felt prior to the open, mid-day, afternoon
trading sessions and your feelings during each trade.
Prior
to bed...each and every night and/or prior to each trading
session...review all the specifics of your favorite trade setups...
I can do this, there are traders succeeding at this, I deserve to be one of them, I will make money in the markets, I will learn from my mistakes, I will make the commitment to study and review my trading, etc.
Plan
your business and relaxation schedule. Also, let your loved
ones know your schedules...ask them to respect such time
zones and in return you'll be completely theirs outside those
designated time zones.
Plan
or do spontaneous social events with your loved ones and let
them be in charge...allowing you to be the follower...to re-energize
and regain your psychological strength.
Have
an activity (hobby) that you enjoy and helps you forget about
the markets while soothing your soul...example: photography,
painting, collecting, reading novels by your favorite writer,
etc.
Trading Psychology Books:
Further, to do a search on any info on this page, Google is an excellent search engine tool.
We truly hope your investing and/or trading is as successful and profitable.
Sincerely,
M.A. Perry and Associates
TheStrategyLab.com
"I've competed in athletics (high school level, Jr. national level, collegiate level) and was a combat-engineer in the Armed Forces...in comparison...trading is the toughest psychological game in town." -M.A. Perry