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Psycholgy of Trading and Managing Money

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Psycholgy of Trading and Managing Money

Most of the time I over trade and my account goes to trading disabled or daily risk level. I blew up many of my trading accounts , now using Apiary software helping me to understand how my trading psychology is working, I understand that I am over confident with some of my trades, and even my strategies and analyses are very right, the emotions take over and I will lost most of my profits. As Shawn Lucas says: " Gain a better understand of the common mindset and emotional challenges we face when we make decisions how to allocate our money to different risks." My trading account is mostly going back and forth regarding my emotions. My challenge is how to manage properly my emotions to increase profits and reduce loses and How to properly manages my trades to go to Daily Risk Level ?

Mon, 08/05/2019 - 9:14am

Stay positive get a system and follow the rules. Most of my losses are when I'm trying to make up for a bad trade and break the rules.


I am listening to a book right now (I love Audible!) but I am going to order the paperback because it is really good and may help pinpoint the problem. May I recommend "Trading In The Zone" by Mark Douglas? Here is the description on the Amazon page

> Douglas uncovers the underlying reasons for lack of consistency and helps traders overcome the ingrained mental habits that cost them money. He takes on the myths of the market and exposes them one by one teaching traders to look beyond random outcomes, to understand the true realities of risk, and to be comfortable with the "probabilities" of market movement that governs all market speculation.

Sometimes if you search for a book online with 'pdf' after it there are sometimes copies out there you can preview if you know what I mean ;)


Jeremey, I was going the other way round from print to audible when getting notice of a recording, many people say that this is the best book ever on trading psychology; some very good seminar recordings on youtube as well!


A tad more on the subject,


Mark Douglas calls this exact sympton the "Boom and Bust" cycle in his book.
It's when you've learnt enough to make some money here and there, but haven't mastered your own psychology, and you let your win streaks blind you, then you inevitably get crushed by the market soon afterwards, most of the time giving back more than what you've earned previously.
Gotta say I'm another victim of the "Boom and Bust" cycle, which I had to spend so much time just to slowly get my consistency up.


jeremeyhustman, great stuff I am currently going through "Trading in the Zone". Plus I found a seminar Mark Douglas held and it is really good here's the link: there are two parts

part one:

part two:

GoldenPropheciesTrading, hang in there! Beeline is a great place to be.



I guess the most Important thing is to be aware of your emotions. Keep records of your trading. Try to to recognize your emotions and write them down when trading. Doing this makes your emotions actually visible to you, so you can develop a habit of not following your emotions when having bad trades every time you rely on them.