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Trading Psychology by Traders Academy (MR - Singh)

This document discusses the importance of trading psychology and having a strong mindset for successful trading. It emphasizes that to be a successful trader, one must master three key areas: trading strategies, money management, and managing emotions. Specific tips are provided around developing a structured trading plan, using relaxation techniques to manage stress, maintaining a positive outlook, and focusing on process over outcomes. Overall, the document stresses that trading is a business that requires discipline of both the mind and strategies to enhance consistency and profits over time.

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mmmks
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565 views18 pages

Trading Psychology by Traders Academy (MR - Singh)

This document discusses the importance of trading psychology and having a strong mindset for successful trading. It emphasizes that to be a successful trader, one must master three key areas: trading strategies, money management, and managing emotions. Specific tips are provided around developing a structured trading plan, using relaxation techniques to manage stress, maintaining a positive outlook, and focusing on process over outcomes. Overall, the document stresses that trading is a business that requires discipline of both the mind and strategies to enhance consistency and profits over time.

Uploaded by

mmmks
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 18

TRADING PSYCHOLOGY

To be a successful trader, your intellect and emotion must work as one team.”
There are three main areas we need to
master to become successful traders –

 Trading Strategies
 Money Management
 Working with our emotions
Can’ t
decide

Should I? Shouldn't I?

Shouldn't I? Should I?

“Why am I notable to pull the trigger, even when I am


right?”
Canʼ t take losses
Aghh! Loss
again…..
Whatʼs wrong
with me?

“How could I
lose?”
Many moderate wins = One
giant loss

Reproduced from Cartoonstock.com

“Why do I lose my winnings in blow-out trades, repeatedly?”


Consistent profits
Trading
System
Control emotions

Make profits Get greedy

Your mental
Learn Trading Apply Trading Lose money conditioning
Method Strategy

Get fearful

Blow up
Open account Fund account Close account
account
Personal
Experience

CONSCIOUS MIND H
O
Health Blueprint M
E
UNCONSCIOUS Wealth Blueprint O
MIND S
Driving Happiness Blueprint T
force A
Love Blueprint
S
I
S

B
Watch Charts
O
Click to enter/exit
D
THE
LINK Pay attention
to your body
signals
CONSCIOUS MIND
(Step 1)

UNCONSCIOUS
Visualization
Affirmations MIND
Faith

(Step 2)

Bio-feedback

Conditioning
changes, B
Performance
improves O

(Step 3) D
Your Emotional Experience while Trading
1 – Rarely
2 – Occasionally
3 – Sometimes
4 – Frequently
5 – Almost always

I am happy while I am stressed while


trading trading
I am alert & energetic I am anxious while
while trading trading
I am capable of I blame myself for my
making successful losses
trades
I am in control while I make impulsive
trading decisions while
trading
I am satisfied with my I get edgy and
trading results frustrated while
trading
TRADING PLAN

 Trading is a business

A Trading Plan is a guide for


running this business

A good Plan addresses all three


aspects of trading – Method,
Money and Mind.
TRADING PLAN

 Master the Method

 Strategy may vary depending on market


conditions

 Markets are unpredictable – flexibility is


required.
TRADING PLAN

A good understanding of risk and


reward – Money Management

 The potential Profit and Loss in a


trade are equally important

Stop Loss to limit loss; Trailing Stop to


maximize profits
TRADING PLAN

 Last, but not the least, is the Mindset.

 Relaxation techniques

Awareness of body signals and


emotions

 Think Points - not Money


TIPS
(Body)

 Start your trading session with a


few
Relaxation exercises

Energize yourself either through faith


or motivation
TIPS
(Conscious mind)
 Have a Trading Plan you are comfortable
with

 Understand your relationship with money

 Learn Money Management techniques – in


the real world they are as important as trading
techniques
TIPS
(Unconscious Mind)
Pay attention to your Body Signals
while trading

Keep a Trading Journal with details of


your trade and also what your emotions
were during that trade

Pay special attention to your emotions


when you face a loss

 Be aware of Negative Self-talk


TIPS

 Use
affirmations and visualization to keep
up your positivity

 GiveGratitude – not many in this world


have the opportunity to sit at home and
make money!
A good trading day is one in
which you follow your Trading Strategy in
a calm and confident manner,making
sure that, at the same time, you are
managing your money well – when
in gain or loss.

This, in turn, will enhance your profits and


consistency, making you a truly successful trader
who can trade for a living!

Thank you! BY MR. SINGH

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