What You Will Learn From This Course
The Importance of Psychology in Trading
Trading Psychology is important. You must understand why we are sometimes driven by our emotions and how you can contain them.
We will explore the basics of market psychology, which biases can be dangerous for the trader, and how to avoid them. We will give you the best conditions before entering in a position, but also during it and even after. All those steps are essential to control your emotions and avoid mistakes.
The Biases in Trading Psychology
In a hostile and uncertain environment, you will often cling to what you know best. People generally have a visceral need to find their marks in an environment that is hostile or that they do not control.
The most famous biases are the Cognitive Biases and the Emotional Biases. In this chapter, we will go through each of them to prevent you to make the worst mistakes.
We will fix wrong principles on which you are forging your opinions and decision making and avoid you to put put you into a state of emotional pain or even shock, which can make you push for self-destruction in extreme cases.
Psychology of a Trade
The human body is a fantastic machine. It is so adaptable that it has allowed humanity to survive and evolve over millions of years. However, our body has its limits.
In this Course, we will explain why it is essential to take care of yourself and your lifestyle BEFORE the trade, but also, we will approach the situations where you start feeling emotions DURING the trade, to help you get through them. Finally, we will guide you to make a post-analysis of your trade AFTER it so you can learn from it.
Controlling Your Emotions
It is important to understand psychological biases and their impact on your rationality. You must not only understand their origin but also implement the necessary means to correct them.
It is counterproductive for a trader to want to get rid of his emotions completely, even if he has to learn to control them.
In this Course, we will teach you to control your emotions and learn from them. We will help you to avoid situations where emotions take the control and push you to make irreversible mistakes.
The mistakes you should avoid
In this Course, we will discuss the mistakes you should avoid in your Trading such as “Not stopping your losses”, “Being overconfident”, “Being impulsive”, etc.
We often hear about psychology in trading, but few resources deal with the subject seriously. Often it is due to a lack of knowledge of the author about the trading world, or it is about rules that are too general to be applied.
Trading is not only taking a position and then going out in the best case in profit. It is a job that must be done before, during, and at the close of the trade.
This work is not apparent because while it is easy to analyze a trade, it is much less simple to understand what made us open or close a position. This chapter will try to give you some points of reference.
You will learn to know yourself better, to leave less room for emotions that spoil your performance. This lesson will require patience by repetition/analysis enough times to acquire automatisms.
The technical aspect of trading will not give you solutions on what is most penalizing, that is you. To maximize your success in any field, you will have to discover how your mind works. We will cover those aspects in this chapter to limit anything that can hinder your performance.
What this course is not
We do not want to trick anyone into purchasing the course, so the best solution is to clearly state what this course is not:
- This is not a motivational course where 75% of the content is meant to get you pumped up about trading. There’s no fluff in the course.
- Not for the get-rich-quick folks. You need to put in the work to make a lot of money!