Trading Psychology, we are not robots, but…

Trading Psychology, greed, fear, hope, regret

Trading Psychology, greed, fear, hope, regretIf investing in a stock exchange meant just buying and selling equities, well, we would probably be all the perfect Transformer-style robots! We all know that it is not so, in fact, our actions are controlled by emotions, both positive and negative (trading psychology).

What I want to focus today is: why, if all investors see the same numbers, the same news, analyse the same charts, they do not come to the same conclusions? I got an idea, and from here I start with the first great emotion, greed.

Let's not deny it, everyone wants to buy bottoms and sell tops!!

“I did my beautiful course at a 5-star hotel, learned a lot of new words and saw the Euro Dollar that in 1993 made a "head & shoulders" by the book. Markets, you are going to see some things on Monday!" The problem is that often is not so, or rather, we do the analyses on the already formed chart.

Why is it that the reality, did not correspond to the theory?

From here begins the first stage of anger/frustration: "damn chart! Next time I will not go out of the market so soon!”

And so, the greedy Trader came into the market and did not even come out, either when his Trading Plan told him to do it. The equity inverted and he lost the profit of a month of intense work.

Anger becomes wicked wrath and you enter a state of hyperventilation to lower the 40° Celsius (104° Fahrenheit) of body temperature.


The greedy Trader acquires a new skill: anger!

This emotion is presented in various forms: from an obstinacy aimed at recovering the mistakes made in trading (ALL take the stop loss, who says the opposite or is a liar, or has never traded) and triggers a flurry of orders totally wrong, until the fantastic decision to enter with totally disproportionate investments compared to their accounts.

You're probably laughing, thinking, "but who can do such things, you're exaggerating David.”

No. I'm talking exactly to you because these emotions will sooner or later rise, especially in an indirect way: take care!

Finally, the greedy and angry Trader gets to the next level and acquires the state of euphoria! He manages to bring home a couple of brainless investments, the sweaty days spent in front of the PC start to have a reason, we finally got to the much-acclaimed way of success !!! It is precisely this situation that raises the mind of our Trader, just like when you shake a bottle of Coca-Cola: at the first crack, boom! Everything goes out.

The greedy, angry and euphoric trader returns to normal, but with behind him, a pretty beating, both economically and above all, psychologically.


But how can you do?

I can give you thousands of guides on emotions, you just need 3 words typed on Google… et voilà, it opens a world of theoretical study. What is never said is: and positive emotions? What do I do with those? I already imagine you, the reader and investor, at your desk, concentrated and tendentious to the angry, which analyses 200 charts and, minute after minute, your eyebrows are getting more and more raising. I tell you one thing: relax.

"David, how can I not worry? Trading is my profession, I have to bring home the bacon." Then live it like a profession! Before you became a trader, you went to work, and you got angry, you know why? Because you did not like your job. Now that you have chosen to trade, and you like it, why do you continue to be nervous?


Check out your emotions, accustomed to giving precedence positive ones!

As I mentioned above, ALL real investors lose some trades, it is normal. Do not you get a wrong day at work? So!

Smile, look at the markets positively, with happiness: I am not saying to jump for joy when you are stopped in a loss, but learn to not think about it anymore. If your method really works, then you will be rewarded statistically.

Try to follow these phrases and you will live better. Find a method that completely eliminates emotions. I repeat. Completely!


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