Ontology is root of psychology, though ontologists are not good psychologists. "Trading psychology" is different from psychological issues faced by traders while trading. Trading psychology is ontological perspective of "I am trader" as a "way of being". Ontological perspectives are used to develop abilities/skills in specific areas of interests. The root of psychological problems in trading is lack of creating ontological perspective (way of being) that "I am trader". Ontology is an very ancient science of developing abilities through "way of being". Psychologists cannot help traders to trade effectively. Only a professional trader can coach people who are passionate about trading. "Trading psychology" actually is an ontological perspective, not psychology as such. Trading is business and needs business skills. Business is an art. Any business skill has the following qualities: 1. Passion (love) for business 2, Creativity 3. Grace 4. Intuition (beyond logic/analysis/reasoning) on business 5. Insights (accurate and deep knowledge) into business 6. "Never Give up" Attitude 7. Humility to learn, unlearn and relearn And the foundation of any skill is in creating the ontological perspective "I am That". (eg. "I am businessman", "I am trader")
Psychology is an estimated 500 - 700 million dollar industry (growing) on wall street alone. Keep in mind that London is the new financial center of the world and there has not been any research that I know about involving how much money financial institutions in London, Hong Kong, Chicago or Singapore are spending on psychologists.... In house or contracted to help improve the performances of their traders or help get them back on track when their performances begin to suffer due to psychological reasons. All of these psychologists have university degrees, members of the same associations and some (not all) have interned at financial institutions. Those that have not interned at a financial institution...some became known to have privately worked with professional traders in their private practice prior to being hired by a financial institution with a very lucrative pay package plus benefits the psychologist did not have in their private practice. Psychologists that work exclusively with traders are often called professional trader coach or psychotherapist although the word psychotherapist is more commonly known with psychologists not working with wall street. In contrast, psychologists that works anybody (e.g. children, family or whatever) and then they work with someone that happens to be a professional trader...these psychologists are not called professional trader coach. Another growing are is Behavioral Finance...its been growing exponentially in the world's top financial institutions in my opinion due to the Nobel Prize being given to Kahneman in 2002 and Shiller in 2013. Its also been growing as a university degree or class credit requirement for those grad students in behavioral economics. I recently met a PhD psychology student that plans on working on wall street or with any financial institution in London, Hong Kong, Singapore or Chicago. She has also been studying "behavioral decision making initiative". I asked her is that a normal route to wall street as a psychologist. She said she doesn't know if its "normal" but it was suggested to her by the psychologist she interned with that works exclusively on wall street with institutional traders, executives, financiers and even wall street lawyers. Her goal is to be hired "in house" instead of private (contracted). The above involves professionals at financial institutions. What about retail traders ? Most of us can not afford a psychotherapist when our trading problems involves us. In other words, we're often on our own trying to be our own psychologists or we just simply dismiss it and then put more efforts into our trade method instead of dealing with the real problems for our trade struggles. I myself, I only know of one retail trader that's currently seeing a psychotherapist (his private health plan covers it). He started seeing one soon after the death of a family member from a hit/run accident and legal proceedings involving such. In addition, it took a huge toll on his trading...he went from a very profitable trader to barely a break even trader. Some days he could only trade 30 minutes before all the anger and depression would slam him against the wall. Now he feels much better about himself and his trading and back to being profitable.
Its not advisable to trade when a person is physically or emotionally or psychologically disturbed. Trading Psychology : Trading is an ART of business psychology. Trading skill/ability is more of business skill and less of technical/analytical skill. "Trading psychology" has nothing to with a person's psychological problems. It is a psychological skillset to be developed by an ambitious trader. Ontology plays major role in developing trading skill.
Unfortunately, most retail traders do not believe in the importance of psychology. Therefore, they will trade and prefer to tweak and change their trade method instead of dealing with the real problems that's sabotaging their trading regardless if its due to something occurring in their personal life or something to do with their mind...how it interacts with the markets. Behavioral Finance, Decision Making and Psychology. Everything else is just semantics while talking about the same thing.
Scary because the military uses them, schools uses them, human resources of most major corporation uses them, legal courts uses them, NASA uses them... Thanks for the contrarian link.
Psyhology trader have high role during trades, and I thi as tarder also they need to built up beter psycholkogy tading if they want to become good trader, many decision trader usualy still based on their emotion to making profit from trading
Good one ! "One man's food is another man's poison". We must not forget that every individual is UNIQUE and his psychology is unique. General psychology theories are for academic/research purpose. One has to visit a psychologist/psychiatrist for personal counseling/therapy.
As human natre if emotion involved in trading, after suffering with loss, hence usually we will in regret because as human nature if actually won't to losing money, but as trader also must realized if loss also part in trades and we need to manage these risk