The Psychology of Trading

Trader Strategies – the Psychology of Trading

A one day programme of effective psychological strategies for trading success.

Most of today’s sporting elite have not only technical trainers they also have “mind coaches” to ensure that when the pressure mounts, they are able to maintain a positive and calm frame of mind. The greatest barrier to winning is an uncontrolled fear of failure. By focusing on failure or even the possibility of failure, the trader reduces their chances of success. When performance becomes an issue, the resulting cycle of stress and fear will weaken many to the point of complete melt-down. Successful traders are supremely confident and for much of the time trade in or close to, “The Zone”. To know your limits, you must first exceed them. A bad trade on its own is not a failure. It only becomes a failure when, due to stress and anxiety, the trader breaks process and allows emotion take over and dictate their moves.

Stock TraderWhen a trader’s self-talk, while trading, is angry and frustrated it’s definitely not market strategy or success focused. How many traders can honestly answer the following questions positively?

  • Am I doing positive review work on myself and my trading while the market is closed?
  • Can I actively identify what I’m doing right and wrong in my trading each day; with specific steps to address each?
  • Am I changing my strategies to match ever-changing Markets?
  • How would my trading profile change if I eliminated a few days where I lacked proper risk control?
  • Do I regularly update and stick to risk management parameters?
  • Do my market positions reflect the market as it is, or do I try to fit the market into my positions?
  • Do I know when to quit when I’m on a losing streak, or do I try to recoup losses with trades outside my risk profile?
  • Do I also know when to hang on when I’m winning to truly capitalise on a good day?
  • Am I enjoying my job as a trader giving me a sense of contentment?
  • Do you know what makes you different and gives you an edge over other traders?

Confident traders are self-aware. They know their strengths and weaknesses and have no problem adapting when things go wrong and, equally importantly, sticking with things when they go well. However confidence and competence are earned and there is no substitute for hard work and self-reflection.

While this program cannot create confidence in a day; it will supply a trader, eager to improve, with tools and techniques that when put into practice will give them a new found confidence and a greater chance of success.

It is probably best to attend with an open mind and a willing attitude that this may help change your life, since our attitude to what happens to us can be the single greatest catapult to personal success.

Each of the modules is self-contained and participants should be able to realise some or all of the following benefits:

  • Learn to become the person you can be by following a little known body-building tip
  • Experience how to tap into “The Zone” more often using a technique known as anchoring
  • Discover how the twin peaks of motivation affect you and how to use them in your favour
  • Stop messing with reality! – How to beat the traps of; generalisation, deletion and distortion
  • Set SMART goals to chart your new found success
  • Use reframing techniques to discover positives from losing trades
  • Use six steps to reduce “performance anxiety” and trade effectively on a long term basis
  • Discover why Brett N. Steenbarger, Ph.D. recommends meditation and how to practice it