Trading Emotions

The Psychological Battle of Trade-Offs In Trading

Trading is ultimately about trade-offs. Every decision you make in the market comes with its own set of pros and cons, and understanding these can significantly improve your trading strategy and results. In this article, which was inspired from a recent Trading Mentorship Group session, I’ll highlight some of the common trade-offs that traders deal with on a daily basis.

Trade Journal Template + Video - The Power of Daily Trade Journaling

In this article, we'll delve into the benefits of trade journaling, the key components of a trade journal, and how you can implement it effectively in your trading routine. Plus, if you want a built-for-you template, there is one that can be downloaded as well.

The Trading Journey: Managing Expectations

Many developing traders approach the markets with the belief that their energy should be immediately rewarded with substantial profits. This belief is amplified in today’s day and age, with many skilled traders sharing their profit screenshots via social media. However, this mentality is flawed and can lead to frustration, impulsive decisions, and ultimately, setbacks in their trading journey.

Trading Is a "Regret Business" - Here Is How To Build Resilience

Regret is a common emotion in trading, often triggered by the realization of a wrong decision, such as selling too early and missing out on potential gains. This feeling can be particularly intense when traders associate their self-worth and identity with their trading success. When a trade doesn't go as planned, it can feel like a personal failure, leading to heightened emotional responses.

Fearless Trading: How to Confront and Conquer Your Trading Fears

One of the biggest challenges that traders face is the fear of failure and the unknown.

To overcome these fears and increase their chances of success, traders must adopt a proactive approach and develop strategies to face their fears head-on. Here are some actionable tips to help you navigate these challenges.

The Importance of Keeping a Trading Journal for Day Traders

If you want to be successful with day trading, you must understand that it demands a disciplined approach and a commitment to continuous improvement. Through working with traders in a 1-on-1 capacity, I have found that the trading journal is a tool that is often overlooked. Sadly, many developing traders do not understand the value that can be found in simply reviewing their own trades and trading behavior.

10 Ways to Stay More Disciplined In Trading

Most developing traders struggle with discipline. They are usually missing something critical. Here are 10 tips on how to stay more disciplined when trading.

Normalization of Deviance in Day Trading

If you have been trading for any length of time, you know that sometimes you can get paid for breaking your rules - and this is one of the worst things that can happen to a developing trader.

The Power of Emotions in Trading: Understanding Regret and Risk

The interplay between emotions and risk-taking keeps many traders second-guessing their choices. When confidence in a trade's success runs high, execution is swift, but uncertainty can lead to hesitation, causing traders to miss out on profitable market moves.

How To Reduce FOMO as A Trader

The fear of missing out (FOMO) is an emotion that often haunts traders, casting a shadow on their progress and overall equity curve. Unrestricted FOMO can cause traders to chase trades, oversize, and revenge trade - All of which do serious damage to trading portfolios. In this article, we present seven concise steps to help you seamlessly transition from the anxiety of FOMO to the joyful state of missing out (JOMO).

3 Pillars of Trading Success

Trading is a journey of mastery, viewed through the multifaceted prism of three overlapping lenses. These lenses are the Technical Lens, the Performance Lens, and the Self Lens. To achieve true mastery in trading, one must skillfully balance and synchronize these three lenses. Let's delve into each of them.

Cognitive Load - Why It Plagues Traders and How To Beat It

In trading, the battle isn't just against market forces but also against something less tangible yet equally formidable: cognitive load. It's a challenge that plagues newcomers, causing them to feel overwhelmed, disoriented, and often leading to a merry-go-round of trading strategies.

Chasing Trades - 4 of the Reasons We Do it, and How to Stop

Chasing trades is a pitfall that many traders fall into, often with detrimental consequences for their portfolios. In this article, we will explore the three primary reasons traders chase trades - FOMO (Fear of Missing Out), the belief that any trade can turn into a winner, and the disregard for a well-thought-out trading plan. More importantly, we will provide actionable strategies to help traders break free from this destructive cycle.

15 Mental Models All Traders Should Know

A trader's ability to make informed decisions is profoundly influenced by their understanding of various mental models. These cognitive frameworks, rooted in psychology and probability, shape how traders perceive and respond to market dynamics. In this comprehensive guide, we delve into 15 crucial mental models that can empower traders to navigate the markets more effectively.

Mastering Trading Challenges: What to Do When Your Strategy Falters

Becoming a consistently profitable trader is a journey fraught with challenges, and at times, even the most seasoned traders find themselves facing setbacks. The allure of quick wins and instant rewards often clashes with the reality of trading – consistency, persistence, and hard work, all without the guarantee of success.

Mastering Emotional Capital in Trading

In the world of trading, emotional capital is as valuable, if not MORE VALUABLE than your financial capital. When emotions run high or become depleted, traders often make irrational decisions that can lead to significant losses.