Trading Psychology

Your mental state is crucial to success in the markets

 Losing trades are a part of the game, we need to
Dealing With Losing Trades learn from them without destroying our accounts

● Losing trades are a part of trading,

even the best traders have
losses
● Good traders manage their losing
trades fast
● Never let a small loss turn into a
big loss
● When a trade is not doing what you
planned, cut the trade
● Don’t allow a losing trade to affect
your mental state for the next trade
 Winning trades will happen, we need to prevent
Dealing With Winning Trades ourselves from getting overconfident and reckless

● Winning trades can be just as bad

as losing trades for newer traders
● Good traders don’t allow winning
trades to effect their mental state
● Don’t allow a winning trade to
make you overconfident
● When a trade has hit your exit
target, take profits
● Don’t allow a winning trade to affect
your mental state for the next trade
 We need to think of ourselves as if we were an
Trading Like A Robot advanced AI trading algorithm

● As successful traders, we don’t

trade based on our emotions
● Trades should be placed on our
trading system (supply and
demand)
● We take our profits the same way
we cut our losses, emotionless
● We are constantly monitoring the
market for the next setup that our
trading system provides us
 In trading, we are our own worst enemy, more
Ignoring Emotions specifically our emotions cause us to take bad trades

● Emotional trading is why the market

moves up and down
● Poor traders trade based on their
emotions and pay the price
● As good traders, we need to learn
to ignore our emotions and trade
solely based on our edge (supply
and demand)
● If you catch yourself being
emotional, step away from the
screen and write down the reasons
in your journal
 Overtrading happens to all traders, we need to become
Prevent Over Trading aware of it and stop it before it destroys our account

● Overtrading is when we start placing bad

trades one after another, usually to get
back at the market
● Overtrading usually happens when we
become emotional after a winning or
losing trade
● It is crucial to understand when we are
overtrading so we can take a step back
and re-evaluate the market with a clear
mind
● One way to counter overtrading is to close
your trading platform and open up a paper
trading or simulator account
Key Takeaways
● Losing trades are a part of the game, they will happen and we need to learn
from them without destroying our account
● Winning trades will happen, but we cannot let them make us overconfident
and reckless in our trading
● We need to think of ourselves as advanced AI trading robots that place
trades based on our trading system and not on our emotions
● Emotions are what makes the market go up and down, emotional trading will
only lead to losses and more emotional trading
● Overtrading is a result of emotional trading and should be avoided at all costs