Trading Psychology: Why the Mind Matters in Making Money 🧠🤯

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What is trading psychology? How do traders deal with psychology? How important is psychology in trading? Learn all about trading psychology. OK.

This is really a big buzz word. Trading psychology is the study of how the mind behaves in the trading environment. And this is why it is so important for trading growth and improvement is because your mind is controlling what you're actually doing. We have two tools in trading - our mind and our capital. Both need to be utilised to the greatest effect we can.

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Related Videos
Check our Library of Videos about Trading Psychology (Playlist)

[blazzz]

Great advice as always.
For me 3 books elevated my trading to the next level:
1. Psycology of money, Housel
2. The Chimp Paradox, Peters
3. Mastering trading psychology, Aziz.

[ukspreadbetting]

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[neriac]

Thank you Mark for your videos that are full of experience and are quick to the point. I've watched your videos for a long time. Excellent as always!

[MCandMosRandomChannel]

nice stuff as always man. Keep it up!!

[m.dickinson]

Great as always Mark.
One question: what practical methods do you suggest for keeping our emotions under our control? I believe you have mentioned meditation and exercise in your previous videos, but it would be great if you elaborate more on this. I believe many traders know that they should control their emotions, specially during revenge trading and frustration, but it is such a hard thing to do sometimes! Any practical tips?

[cairoweller]

I needed this video so bad because I am in the middle of a loss trade rn for about 2weeks but I will hold it until it either hit my stop Loss or take profit

[VicDamoneJr]

Sleeping well affects the psychology so much … have a quick stop out as well

[mytz-md]

Especially when life happens, it takes more discipline and self control and fortitude to sever ties with the market/trading. Not an easy thing to be at but must be done because it's part of that long haul / longevity element to a trader's life.

[UTDfargo]

The markets are been propped up by the FED printing money with NO limit. Every time the Market blips down the FED dumps cash into the dip.

[whoaitstiger]

Unless we are vigilant, fear causes us to narrow our attention on the object of our fear which tends to turn that fear into a reality.

[swirlandsniff]

Love the content but can't read your board...out of focus and writing is too small

[SindriKr]

Most traders loose money, buying or selling blindly is more likely to win, like 50% change. I dont recommend that though because then there is also a 50% of loosing money. Could try that on a demo account, do eeny meeny miny moe and 1 on 1 risk reward. But even that is difficult to do because we think that we know it, to get to the point that we dont necessarily know it is not what everyone can do.

The thing is, that we hope that the market goes into one direction, then there is always some confirmation that we see that comfirms our bias, then we tend to ignore the opposite confirmation.
I tend to see my mistakes after I pull the trigger, seems that when Im trying to figure it out I dont see it, then after letting go I see it obviously. It can come without an effort. But I believe that learning is important.

I mean that I hope that the market is going somewhere because Im a fraid of missing out on a move, but if I dont know that move then I dont know the next move either. It doesnt matter this move or another move. If I dont know about the next move in the future then I dont either know if this move now is the only opportunity. Better to save the money for a better opportunity than be guessing. And just trade with what you are willing to loose, and try to figure out why you lost or where wrong, or just continue if that strategy wins more than looses. We can always improve what we do somewhat.

[michaele.strasser]

I am not more than a retail investor, but I know 1 or 2 thinks about psychology. Almost every video I have seen about trading and psychology is based on wrong assumptions and missleading explanations and wrong generalisation. It does not work this way. If thinks would be so simple every average Joe had already solved the problems. Which is obviously not the case.
The second issue I always stumble across is the usage of the word "mind". Of course the mind has a lot of power, but it is here overestimated and it is NOT the solution for every trading problem someone may face. It is like saying that MACD can tell you everything about the market.
There are general assumptions in a model used to explain trading psychology and so on. This is correct, but this does not help with individual solutions. Not every broken leg is based on the same accident.

[floydsmithjr]

I think the biggest problem, not just in trading but in everything, is overthinking.
Take a “savant”, they can listen to a piece of classical music, having never heard it before, then sit down and play it flawlessly on a piano.
My theory on this phenomenon is they probably have a genetic glitch which prevents them from thinking of more than one thing at a time, pure focus.
It is said that the so called “normal” human can have something like 60 thousand random thoughts flooding through their brain all day every day.
How does this relate to trading ?
To much information.
To many contradictory news dumps.
To many contradictory data dumps.
To many indicators on your charts.
How do we deal with this?
One tool, which a lot of people crap on, is meditation. Meditation done properly teaches or trains your mind to focus your mind on one thing, or even better than that, nothing at all.
I have a blurb written on top of all my journals.
“The objective is not to focus,
the objective is to eliminate
random thoughts, then focus
will be achieved without
effort.”

So are the “savants” the handicapped people?
Or are us so called “normal” people the handicapped people?
Think about it.
Better yet, don’t think about it.