Trading Psychology

The markets work on fear and greed and so are unpredictable and fluctuate constantly. Many large institutional traders trade large volumes that can also have an unpredictable effect on the market. When the market turns down, traders fearing a loss might sell, and the more that sell the greater the fear created and the greater the fluctuation or the drop in price. When the market is going up the greed kicks in and people jump in increasing the price until traders start profit-taking by selling again and it goes down again.

The best traders do not trade from the psychology of fear; they trade from knowledge and tool that will give them a greater possibility of winning rather than losing. The greatest barrier to being a good trader is fear, the fear of loss. This fear comes from the want to control and the want for security. The more you want to control, the more out of control the market seems. No one person can control the market. The more you want the security of your money, the more insecure you will feel. A want is a fear you are lacking something. Other issues such as relationship issues can detract from focus and decision making also causing problems.

We have a program of one session per week coupled with a set of recording to listen to each day to develop a fearless trading mindset.