Introduction

  • Psychology can be explained as the scientific study of the human mind and behavior. Trading psychology entails the study of how traders make decisions and behave in the context of the markets.
  • When exposed to risk and uncertainty, human nature forces humans to act in a certain way. For example, people tend to be emotional when exposed to uncertain environments.
  • A trader will turn anxious in the markets if a position is not working according to his expectations. If he exits his trade position before his stop loss is attained, he will be managing his anxiety rather than addressing the trade.
  • In this example, the trader turned to use his amygdala hijackings in decision-making, which is always wrong. To trade successfully, we must learn to reason.
  • This course is designed to help you develop a winning trading mindset.

Why we study trading psychology?

  1. Learn how to think like successful traders.
  2. Understand how to manage emotions and think rationally while trading.
  3. Learn how human nature interferes with trading success.
  4. Develop sound decision-making strategies
  5. Understand the secrets to trading success from a psychological perspective.

What we shall study in this course

Trading psychology will contribute significantly to your success or failure as a trader. Everyone understands technical analysis and fundamental analysis when taught, but very few people understand themselves.

This course is designed as a tool to help you understand yourself in the context of trading. The psychology of trading involves studying a trader’s behavior and mind to build the best habits and develop a trader’s mindset.

Successful trading will demand that the trader narrow down to understanding how the mind works and specifically pay attention to his mind. A deep understanding of the two will unveil the road map that traders need to master trading psychology.

We will cover 13 different elements of trading psychology. Each lesson has three parts—an introduction to the concept, how it affects us in markets, and the solutions.

By the end of this course, we will equip the reader with all cognitive and psychological skills needed to succeed as a trader.

All the best in your journey!