An very detailed overview of trading psychology worth the read

Discussion in 'Psychology' started by risetothetop2021, Feb 22, 2021.

  1. Before you read I have to know and please be honest. Do I have a gift to type and effortlessly stream my sentences together to forum tranquil harmony? I have zero education accept from other forums 4 years ago and stop trading 4 years ago. today is my first day doing anything whether it be research etc. about stocks. read this give me your honest opinion. remember your words will shape a human life's outlook on life itself. Please Transend me

    All of this was typed by me with my own ideas

    Trading Psychology refers to the mental and emotional state a person utilizes to dictate the outcome of a successful trade (Good/Positive psychology) vs a unsuccessful trade(Bad/Negative psychology). Alike normal psychology trading psychology is very much similar, taking into part individual character traits and behaviors that a person uses to make their trade.

    ( A good stock trader should have a professional psychologist once a week to lecture them about work related stress and fatigue, the impact of bad trades they might of made, how that impact is effecting their overall emotions and behaviors, and many much subjects. Having a professional psychologist gives you the benefit of insight to your unnoted patterns, actions, thoughts, feelings, emotional state, etc. Can help you make a decision if you need to go on a business retreat for a week instead of trading(while if you want you could spend that time trading online with fake currency as practice).

    A business retreat is a trip to an exotic locations where you can unplug. No electronics etc. Your goal is to get your mind calmed down. You can develop techniques with your psychologist and strategies to utilize on your retreat. These are just some of the benefits of a personal psychologist.) Make friends with hope and regret stock trading is a situation where "too much hope can get a man killed in here".

    Trading psychology is the emotional component of investor's decision making process which may help explain why some decisions appear more rational than others.

    Fear and greed are emotions that you need to confront, exert your control over ether before they exert control over you. Take up Tai-Chi to learn how to control the flow of energy, and be one with yourself at any moment. Taking something like Tai-Chi gives you control of your body which transfers to control of your feelings/emotions which translates into a better trading psychology (positive trading psychology). Think of trading psychology as Heaven and Hell. Positive trading psychology is heaven(positive energy) negative trading psychology is hell (negative energy)

    Try something I just thought of which is radical and groundbreaking. Try listening to music the entire tradinig session. Not just any music,"music to inspire creative people" "relax daily" "motivational music" "happy uplifting music". Music is truly a beautiful gift from God. So beautiful that I want to have sex with it after a date AND CALL music back!!!! But seriously music transcends you to a place in our current state or reality to a place where nothing can hurt you, nothing can break your resolve, nothing can break your will power, you will make it out more successful than before..

    Affirmations- Affirmations are very important to any person period. When I am rich enough I am going to advocate that we test it in some "pilot" high schools with digital picture frames. This hopefully as I envision it will lead to an entire mandatory life skills class about how to deal with life in all its beautiful complexities. Its sometimes that the most complex of times, times where it all seems to fail and your on your knees screaming Abba Father and you just want to quit. But by some miracle you find the strength to get up, you thank God, and continue on your journey of life. That is what life is all about that paragraph right there those of you who understand it teach this to 1 person and change the world. Its like a rate of return 1% is better than 0% changing the world is no different 1%change from you might lead to the next apple or tesla lol. Try and do affirmations everyday actually know scratch that DO affirmations everyday as you are a winner with a never give up attitute. History is marked by failors. Athelets failing, inventors failing, buisness men failing, but it just takes that one moment that one success to make all those failures null and void.

    Positive trading psychology- Here is an example of positive trading psychology. Today I am going to open strong with overwhelming confidence in any situation so called "life" wants to throw at me. I see my failures as challenges and challenges as lessons to be learned "life lessons". If I loose profit today I have to remember that this is normal infact it would be a sign of market instibility if I didn't loose profit sometimes. The stock market is like life sometimes you win sometimes you loose but you embrace everymoment and every oppertunitiy and you will be exhalted and transended to a higher pane of excistance beyond the cosmos. Some other postive trading psychology is nutriutional. What we eat plays a huge part in our mood, our confidence levels, our postive mindsets, our performance, our everything. Hire a nutritionalist and here the best part you can bill it as a buisness expense as its to help with your work performance so theres a forum of profit.

    Negative trading psychology- Here is an example of negative trading psychology. I can't get over my losses yesterday how will I ever explain this to my spouse and if I lie to her I become lost and detached from her. Stock trading is becoming overwheling vs The stock market is overwheling my senses into pure undiscovered treasure. Which one would you rather be. We all have free will and choice for a reason. Make your choice now and stick to it. Never give up in life. Watch motivational music, motional speeches, tony robins, hell I'll even pay for 1 person next month to get a free tony robins course complelly on my dollar not yours. When you have destiny and discover it you become beyond happy all the time. It's like breathing for the soul
    murray t turtle likes this.
  2. Overnight


    Well, if I have to analogize it, being honest...

    stochastix likes this.
  3. Thank you for being honest do you mind explaining what you meant. I strive to do everything at my best and my best is yet to come. Are my ideas worthy of elite stock traders? I have faith they are (so many double entrees)
    Last edited by a moderator: Feb 22, 2021
  4. MrMuppet


    Honestly, there is nothing more overvalued than this psychology bullshit.

    People blame their psychology for losing money and that's just not correct. There IS an aspect when it comes to deliberate practise and discipline in journaling, tho.

    FIRST find your edge and a profitable trading style. Then you will find that it's not THAT difficult to be diciplined. I mean why would you do unprofitable trades when you know how to make money? I also don't need to be disciplined not to jump of a bridge
  5. smallfil


    You are making it more complicated than it has to be. Trading psychology, or the fear of losing or event the fear of missing out are real fears a stock trader has. So, how do you remove the fear? The answer is reducing the risk to manageable levels where any loss will not faze or scare you. Think about it, the only thing you can control in stock trading is the risk you take when you place any trade for that matter. You do not have control over how much monies you will make or even know ahead of time, you will make x amount of dollars. Yet, risk you can control before you even place a single trade. For me, risk no more than 2% per trade and if you are a newbie, take no more than 5 trades all at once. That puts your maximum risk at 10% of your capital on a worst case scenario, assuming you lose every cent and experience a 100% loss of capital on those 5 trades. Using stop losses, you further reduce your risk to even less than 2% most times, it will just be 0.25%-0.50% per trade you end up losing. Now, I assume you have a viable trading system giving you an edge. You got to figure out which stocks you are going to trade and where you are going to enter and exit. Once, you take care of the risk, the psychological stress is gone.
  6. wow I'm so happy you are nice people. Back on buisness well I am just restarting out I have zero education I learned everythin I know which is not much by intiuation(was not my intent to learn that way) I believe God gave me a gift in buisness so I can fund my project destiny(showing people how to find embrace and complete thier individual destinys) look out you will see my company going public in 7 years times.

    What are some things that I should be doing now to prepare. I am not learning much right now not until I move to las vegas. Should I go to a university class and educate myself or will online trading academy surfice? If I offer you a couple thousand half now half later would you put together a book of your personal knowledge, your personal pain, your personal psychological stock trading break downs, how you overcame it, what you learned from it, what you would do differently. what you would tell your youngerself if you could(never know it could be possible lol double entra)

    hope to hear from ya soon
  7. Questions I have

    1)what did you think of my ideals ( personal psychologist, buisness retreat,tai chi, healthy eating
    2)overall if you were first reading about psychology of stock trading how would you rank my words
    3)What mistakes did I make was it I became temporally arrogant in a way only in a way and forgot i'm talking to sesoned professionals
  8. smallfil


    Have no desire to teach anyone how to trade. That is the hardest thing for anyone to do. Instead, I will point you in the right direction. Just read Stan Weinstein's book Secrets for Profiting in Bull and Bear Markets. That is chockful of information. Suggest you read it cover to cover and do not skip. This guy wrote just this one book mind you. If you seriously, study that book, you will be a good trader in no time. Of course, add the risk management I mentioned above. Not affiliated with him and not promoting him but, I believe it is one of the best books on stock trading for any newbie trying to become a good trader. Good luck.
  9. zghorner


    You're going to make a fortune. Like the Tom Vu of day trading.
  10. stochastix


    your not talking to anyone thats just a piece of illuminated plastic in front of you. crazy shit bro, are you autistic perchance ?
    #10     Feb 22, 2021