At first, traders start the quest for the perfect trading strategy. Then at some point, the term Trading Psychology comes into their world. Without necessarily thinking about it, traders want to master trading psychology and start to research about the topic.
The problem is that most traders wouldn't be able to explain what trading psychology really is…
Wait…what is it?
Definition
According to Investopedia, “Trading psychology refers to the aspects of an individual's mental makeup that help determine whether he or she will be successful in buying and selling securities for a profit”.
Let's put that simply:
Trading psychology is based on the fact that your mental state influences your trading.
Now, if our mind influences our trading, how should we go about being in the right mental state?
There are more than one aspect to master before saying that we master trading psychology. Unfortunately, a lot of traders become complacent and blame their mind for now becoming profitable in trading. That ends up being disastrous…
I've compiled a list of resources to help you (more to be added):
How Beliefs Influence Your Trading
Don't fall into the trap!
A lot of traders will read about trading psychology without implementing any of the techniques described in the articles above. If you truly want to master trading psychology, you must make a plan of implementation.
Once you take the time to implement what you read about or listen to, you will realize that trading suddenly becomes easier. Obviously you have to put in some effort at first but the rewards are great.
