Showing posts sorted by relevance for query the-real-reason-traders-lose-money. Sort by date Show all posts
Showing posts sorted by relevance for query the-real-reason-traders-lose-money. Sort by date Show all posts

Sunday, December 9, 2018

Info!! Meridian Trading Psychology Posts - 2017

Below are hand trading psychology posts for 2017.  Other trading psychology posts tin dismiss hold upward works life on the pages for 2006-2014, 2015, in addition to 2016.  Posts specific to mutual trading psychology problems can hold upward works life on this page; posts on unique trading techniques are available here.  If y'all get got problem finding posts on the theme of your interest, a expert showtime pace is to Google "" in addition to the topic.  That normally brings upward several posts.  If y'all would similar to larn into greater depth inwards your topic, the trading mass page volition tending y'all figure out which text mightiness hold upward most relevant.  See likewise the curated Forbes posts.

My coaching utilization is express to trading in addition to investment firms, in addition to thus I am non able to offering coaching advice or services to private traders.  I'm happy, however, to respond questions well-nigh the material, in addition to thus experience costless to contact me at the address on the bio/contact page.



TOP TRADING PSYCHOLOGY POSTS OF 2017
































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Saturday, December 8, 2018

Info!! Making Feel Of Choppy Markets

A psychologist learns to nous to people.  Sometimes what they say is straightforward.  Other times, a somebody volition jump from topic to topic inward seemingly unrelated ways.  The psychologist knows that, at those times, what doesn't brand seeming logical sense makes a psycho-logical sense.  Maybe the somebody start talks almost an overbearing boss at work, together with therefore talks almost non feeling well, together with therefore talks almost a friend who has been distant lately.  Underlying all of these is a feeling state, a sense of discouragement together with frustration.  It's that the world that is the theme, non the particulars.  One has to run into beyond the concrete details to appreciate the underlying theme.

Sometimes markets merchandise inward uniform, coherent ways that nosotros telephone outcry upwards trends.  Other times, markets deed upwards together with downward inward seemingly random ways.  We telephone outcry upwards those markets choppy together with run into them every bit hard or fifty-fifty impossible to trade.  But what if markets, similar people, brand their ain sense during the times when they seemingly flit from upwards to downward together with dorsum again?

The "choppy", range-bound marketplace may endure ane that is trading alongside a dominant cycle.  It may endure trading non-directionally, exactly continuing relative pull versus overseas shares.  It may endure inward a arrive at itself, hiding relative movements of private marketplace sectors.  Perhaps increase stocks are potent together with value shares are weak.  Natural resources stocks are strong, rate-sensitive issues are weak.  Large caps are weak, pocket-size caps are strong.  Very often, beneath the "choppy" nautical chart are existent themes that tin endure traded.

But nosotros direct maintain to nous together with expect beneath the surface.  Like the psychologist, nosotros direct maintain to endure sensitive to themes behind what seemingly doesn't brand sense.  

Many, many times nosotros educate a narrative--a view--and together with therefore decease frustrated when the markets don't follow our story.  Can you lot imagine a psychologist operating that way?

If nosotros tin accept our egos out of the picture--our desires to brand the large marketplace calls--we tin opened upwards ourselves to what markets are actually doing together with merchandise accordingly.  It all begins alongside a uncomplicated question, "What is the theme here?"

Further Readings:


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Sunday, January 13, 2019

Info!! The Greatest Error Traders Make


Thanks to Bella at SMB for bringing this video on edifice your inner coach to my attention.  There are quite a few gems inwards the video, including the sentiment that your inner voice--how y'all beak to yourself--needs to conk your inner coach.  We construct that inner coach past times maximizing functioning inwards the present: focusing on what we're doing forthwith too how nosotros tin produce it better.  It is the procedure of self-improvement that yields the termination of success.  Or, every bit the video emphasizes, winning is non an outcome; it's a process.

The fault I run into traders making is that they pass the lion's part of their endeavor on coming upwards with the side past times side trades--not on the procedure of winning.  They focus on making money, non on getting better.  It would live on unthinkable for them to conk a sum trading twenty-four hr menstruum or calendar week without placing a trade, simply they mean value zip of going a twenty-four hr menstruum or calendar week with no concrete operate at the self-improvement that is the origin of winning.

Imagine an athlete who felt the involve to move into competitions every day, non wanting to missy whatever chance to win.  So much fourth dimension would live on spent on the playing plain or courtroom that fiddling or no fourth dimension would live on spent inwards the gym.  Playing fourth dimension would eclipse practise time.  Conditioning would autumn apart; functioning would demonstrate the number of the lack of drilling too practice.  The involve to win would conk far the agency of winning.

That is the greatest fault I run into with traders.  They desire to live on on the field; they desire to score.  They are fearful of missing opportunities to win.  So they don't conk to the gym; they don't drill too practice; too over fourth dimension they lose their edge.  Their inner voices reverberate the ups too downs of the close recent performance; their inner voices are non inner coaches.  

As the video suggests, suppose your inner phonation spell trading scrolled across the screens of other traders.  Would y'all live on proud to display your inner voice, or would y'all live on ashamed?  If y'all wouldn't desire your inner phonation to conk public, why would y'all desire it filling your head?

Further Reading:  The Real Reason We Trade Emotionally
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Saturday, February 9, 2019

Info!! Managing Your Unloose Energy For Superlative Productivity

Shout out to Terry together with WindoTrader for the ship on effectively managing your TEAM (Time, Energy, And Money).  The ship points to a employment I've noticed inwards many contexts:  traders who are together with then busy next together with trading markets that they neglect to create create the personal resources essential to their longer-term success.

This is peculiarly problematic inwards the representative of non effectively managing one's liberate energy level.   There are several forms of positive sense that get upward productivity together with creativity:  happiness, life satisfaction, energy, together with affection.  When nosotros deplete our energy, it is to a greater extent than hard to sustain the activities that generate the other forms of positivity.  For that reason, a depression liberate energy bird most ofttimes manifests itself inwards depression positive experience, creating a downward spiral--decreasing energy, decreasing positivity--that impacts mood together with behavior, together with ultimately productivity together with audio decision-making.  

How ofttimes create traders neglect to follow their plans together with deed on their ideas only because they are at low levels of willpower due to depleted energy?

Of course of written report nosotros tin reach the sack lose liberate energy due to lack of sleep, overwork, lack of exercise, together with miserable eating.  H5N1 to a greater extent than subtle but important loss of liberate energy occurs when nosotros neglect to tap into our essence strengths together with values during our daily activities.  Activities that nosotros sense equally *meaningful* reach us energy; activities that bang us equally meaningless sap our strength.  Digging a ditch for no role whatsoever would hold out physically together with emotionally draining.  If, however, nosotros knew that earthworks the ditch inwards a sure enough sum of fourth dimension would Pb to a real large payday, nosotros would notice the motivation to larn the travel done on time.

Similarly, when nosotros play to our strengths, nosotros sense activities equally affirming.  The exercise of signature skills is intrinsically rewarding:  nosotros notice enhancement inwards doing what nosotros create best.  When nosotros larn away from our strengths, endeavour becomes exactly that:  project amongst picayune psychological reward.  I volition larn upward at four inwards the morning time to analyze a information laid upward that helps me meliorate sympathise the market; the intellectual curiosity is energizing.  If I had to larn upward at that fourth dimension to create household chores, I would notice it hard indeed to remain awake.

An of import implication of this perspective is that your liberate energy bird inwards researching together with trading markets is a reflection of the grade to which you lot are meaningfully engaged together with challenged.  If you lot attempt out to procedure information inwards a agency that is non your strength--forcing yourself to read, for example, when you lot procedure textile much meliorate yesteryear hearing together with discussing it--the endeavour volition hold out taxing rather than energizing.  That, inwards turn, tin reach the sack Pb to those willpower-based lapses inwards concentration together with other seeming problems of "discipline".  The number is non discipline, per se; it's i of leveraging essence skills, interests, together with values.

A spell ago, I wrote nearly the essence components of a trading process.  At a science level, a trading procedure aligns us amongst best practices:  what nosotros create good inwards markets.  At a purely psychological level, a trading procedure aligns us amongst our strengths together with values.  In that respect, procedure becomes our liberate energy regulator:  it allows us to renew our liberate energy reserves yesteryear channeling our efforts toward ends that are meaningful together with intrinsically rewarding.  H5N1 adept procedure does to a greater extent than than create create energy:  it digs novel wells together with increases our reserves.

Further Reading:  The Laws of Psychological Energy
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