Trading Psychology

Trading Psychology – Introduction of The Series

We are talking about our human mind related to the stock market, our conscious, subconscious behavior as well as the way we react to specific actions. The mind is why the masses lose their money on the stock market, it is important to know what you can do about it, because one thing is certain, if you do not develop mentally, you will not feel any success. In my estimation, Plato’s principle works on an 80/20 ratio, 80% Psychology and 20% trading system can be profitable.

Anyone can learn the system sooner or later, the decisive factor is who makes it to the goal, and only a few can do that. But what separates the few from the crowd?

Constant personality development! – Trading involves a change process in itself because you not only have to deal with the trading system but also with yourself as a person. The toughest opponent you face is yourself!

Investing in your personal development related to your trading psychology should be as important as dealing with trading all the time (even if there is no trading psychology per se, there is only human psychology, which is hardly different from person to person). The only individual thing is a person’s beliefs that influence how we think and act when trading.

Now you are probably asking yourself why you hear so little about this topic, although it is important for trading. Quite simply, in the crowd the topic of “psychology” is represented very negatively, “I go to a psychologist” and “I work on my psyche” these are statements that mean only one thing to most peoplementally restricted, not “normal” or else also traumatic past. I’m not saying that the whole thing can be true, but in my opinion, the whole thing is thrown into the same pot relatively quickly. I mean, just because I’m working on my psyche (which can have different reasons) doesn’t mean that I’m also mentally handicapped. Why so many do not deal with the psyche at all or too late is relatively simple, on the one hand, self-reflection and/or personality change are among the hardest things of all (requires a lot of discipline) but the topic cannot be sold as profitably as, for example, any trading systems. As the saying goes, “When trading, the psyche decides whether you win or lose”

The right questions determine your quality of life:

Most people ask themselves the wrong questions and negative ones.

  • Why does the market have to stop me now?
  • Why does the market have to turn just before my TP?
  • What was the reason for the market’s miss of one or two points?
  • Why am I always unlucky?
  • What makes me choose only unsuccessful trades?
  • Why does that never work for me?

It’s all not just negative questions but also the wrong ones, ask yourself positive questions, and focus on what works and not on what doesn’t work.
The quality of your questions determines the quality of your life.

Since it is an extremely extensive topic, I would also like to work out this topic as briefly and extensively as possible for you readers. So that reading (even if it is again a dry topic) is easier for you.

I’ll first break down the topics to be discussed, we’ll start as follows:

  1. The human psychology
  2. The Human brain
  3.  Conscious vs. Subconscious (The 4 Brain Wave Types, Selective Perception)
  4.  Neural network (automatism, routine, habits)
  5.  Emotions (fear, greed, joy)
  6.  Too much knowledge
  7. Trading addiction
  8. Stress in trading
  9.  Discipline

We will discuss these points in the upcoming article of this series.

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