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Trading Psychology
Pareto PrincipleDiscipline
 –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
VisualizationAsk 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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