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Trading Psychology
•Pareto Principle•Discipline
 –Stops & profit targets –Goals (financial and otherwise) –Trading results –Outside influences –Bad vs. good trades –How to avoid self destruction
•Believe you can
 
 
Pareto Principle
•Aka ‘The 80/20 Rule’•What are your habits/routines before/during/after regular tradinghours?
 –Come prepared
‘psych’ yourself up –NO distractions –Stay calm, collected but focused –Skim news but don’t let it affect you –Bad trade?
don’t sweat it! –Good trade?
don’t get overconfident! –Go out for a walk after close –Come back, review trades daily –Understand what I did wrong/right –REPEAT!
 
 
Steps to Increase Discipline
•Develop a routine
 –Trading, relationships, miscellaneous –Be a voracious reader, have an insatiable appetite tolearn more
•Visualization•Ask yourself: ‘How bad do I want it?’
 –Continue doing things that work –Discontinue things that aren’t
•You’re in it for the long haul
 –Compound your money
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