Category Archives: Trading Psychology

Trading psychology is ‘something’ that a trader creates from existing personality traits that are not initially related to trading, but surface from trading without method understanding.

Why Human Nature Works Against You as a Trader

By | August 17, 2019

The goal of trading is to make money by forecasting future price movements.This is inherently difficult because, as human beings, we cannot tell the future. Surely many new traders analyze data announcements, or economic reports with the goal of buying cheaply before prices may run up, or selling ‘expensive’ before prices move lower; but those… Read More »

Jesse Livermore made $100 million in 1929. By 1934 he had lost it all

By | June 15, 2019

How could an experienced trader lose his entire fortune? Why didn’t Jesse Livermore follow his own trading rules? – rules that should quickly have closed his losing positions. In 1917, with great foresight, Jesse Livermore had bought $800,000 worth of annuities. His objective was to ensure his family had an income in case he lost… Read More »

Power of Mantra

By | June 7, 2019

Once upon a time there was a guru.   He was a truly enlightened soul and his reputation of wisdom and knowledge made him renowned where ever he went.  There was a king who was very spiritually inclined and hearing of this guru’s reputation knew that he wanted to be a disciple of this great man.… Read More »

Why Traders Lose Discipline

By | May 27, 2019

Mental discipline is a finite resource, much like a muscle, that becomes exhausted with use.Mental Discipline is required for focus, concentration, and self‐control it can become easily depleted. As Mental Discipline becomes eroded, we become vulnerable to emotion‐driven decisions and the erratic trading behavior that follows. we can become more susceptible to the trading errors.… Read More »

Trading as a Profession

By | May 25, 2019

Trading is a profession and nothing less. Most professions such as medical, legal, psychological,pharmaceutical, technical, mechanical, engineering, etc., require several years of education, study and effort. Not to mention the money required for learning the necessary skills. Then it takes many more years of actual practice to develop the skills and gain the experience to… Read More »