Hard Roads & Trading Psychology

 

Although I hadn’t intended on mentioning it in my blog, several clients I coach / mentor tell me it’s really helped the psychology side of their trading and that I should share it. Not that long ago, I wrote a book about overcoming unexpected challenges. While not written specifically with trading in mind, it does address how to cope with a variety of losses, how to manage emotions, and uncover strengths / resources.

 

We all experience losing trades on a routine basis. And I never met a trader that didn’t struggle with emotions… at least occasionally. Trading is truly a microcosm of life… if we’re aware and mindful we can learn so much about ourselves from trading. It exposes unexamined beliefs we have about our hopes and fears, distortions around our sense of self-worth being contingent on our performance, what we do or don’t trust about our perceptions, and shines a light on the unhealed baggage we unconsciously carry around from past experiences.

 

Most would agree that the challenges we face in our personal day-to-day lives can also impact our trading. That our personal struggles can potentially and adversely affect our ability to see the facts on the chart, to remain disciplined, and regulate emotions. Having a strategy with an edge, repeatable methodologies and processes, and consistent routines are all critical for successful trading. Yet where most traders fail is in understanding their own psychology. Understanding who you really are and how to manage what you feel in real time effectively. Willpower alone won’t do it.  It’s hard but rewarding work to delve into learning how your beliefs and emotions drive your behavior. But the rewards (and profits) are great. 

For more on trading psychology

 Hard Roads: Overcoming Unexpected Challenges