A view on how your psychology can interfere with you trading performance.
We Trade to Trade Well
The psychology of trading is a complex and multifaceted area of study that delves into the mental and emotional aspects of making financial decisions in markets. This Wednesday, BluSky had Jared Tendler on the YouTube channel talking about trading psychology. BluSky traders had the opportunity to send in their questions and get a some very qualified answers from Jared on the subjects.
It becomes evident that traders often seek quick fixes to their problems without understanding the underlying causes of their difficulties. Jared, who is a specialist in this field, emphasizes the importance of addressing the root causality of trading issues rather than looking for temporary solutions. He points out that traders who only patch up their strategies without addressing foundational flaws are setting themselves up for greater failures down the line.
Tendler’s approach suggests that a deep psychological understanding is crucial for long-term success in trading. Traders must be willing to engage in self-reflection and to confront the often-uncomfortable truths about their decision-making processes.
This involves recognizing patterns of behaviour that may be detrimental to their performance and developing strategies to mitigate these tendencies. The psychology of trading is not just about managing emotions during market volatility but also about building resilience, discipline, and a mindset geared towards continuous learning and improvement.
In essence, the psychology of trading requires a commitment to personal growth and a willingness to invest time and effort into understanding oneself as much as the markets. It’s a journey that goes beyond seeking quick tips and embraces the complexity of human behaviour in financial decision-making.
Jared did, and Matt has also spoken several times before about following a system/strategy without deviation and following the rules, even if you lose several times in a row. You may doubt what you’re doing, and your mind may try to find other strategies, but if you followed the rules, you did well.
And even if you lost, you traded well by following the rules. With proper risk management and position sizing, you are still on track for success. We should all strive to trade well and work with our minds to achieve stoic equanimity in our trading.
If you want to learn how to play the mental game of trading better, log on to https://blusky.pro/members/tools/jaredtendler and begin your journey to stoic equanimity.