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What’s Up With Trading Psychology?

Some I know, would wish that trading had nothing to do with emotions and trading psychology, but it does! To say that trading psychology is the end all problem facing every trader would not be true. But, with that said, it accounts for at least 50% of trading failures. You can know all the technical trading analysis you want, but that only makes up about 50% of trading success.

Many profitable traders would say there has to be a market edge to succeed in trading. You can have a consistent winning strategy, residing in the zone of trading and staying focused, but, without that edge, you have experienced only 50% of trading at the top of your game. That trading edge is, dealing with and ultimately conquering your emotions and mastering trading psychology.

If you answer “yes” to most or ALL of these? You need some help with your trading psychology.

  • My strategy feels aimless.
  • I lack confidence in trading.
  • My strategy lacks a structured plan of attack.
  • I am looking to lay down my trading business.
  • I struggle to follow my trading rules.
  • My trading strategy seems dull and not focused.
  • I have good trading ideas but I can’t turn them into profits.
  • I often make all my trading decisions on emotion. 
  • I am not able to gain consistent results.


Our minds are made up of the conscious and the subconscious, of which approximately 10% are conscious and 90% of our personality is formed by the subconscious. 

It’s a lot like an iceberg in the middle of Antarctica. What you see exposed is only 10% and the part we don’t see makes up 90% of the iceberg. In this case the 10% exposed is our conscious, the part that is not exposed, or seen (the 90%), this makes up our subconscious. 

Let’s first take a moment to consider the fact that your subconscious mind is like a huge memory bank. Its capacity is virtually unlimited and it permanently stores everything that ever happens to you. By the time you reach the age of 21, you’ve already permanently stored more than one hundred times the contents of the entire Encyclopedia Britannica.

Consciousness refers to your individual awareness of your unique thoughts, memories, feelings, sensations, and environments. Essentially, your consciousness is your awareness of yourself and the world around you. This awareness is subjective and unique to you. If you can describe something you are experiencing in words, then it is part of your consciousness. 

What’s The Difference

Again, the conscious mind contains all of the thoughts, memories, feelings, and wishes of which we are aware at any given moment. The unconscious (or subconscious) mind is a reservoir of feelings, thoughts, urges, and memories that are outside of our conscious awareness.

The Mental Game

There is no “silver bullet” to being successful at trading, what you need is a system that works and incorporates practical steps to achieving a strong mental game. A lot of trading psychology is wrapped around the subconscious. In other words, we often due things with out us being aware that we are doing them, such as trading from our emotions.

There really is hope. You do not need to stay stagnate, wondering when and if the next win will come.

I remember flying on a plane many years ago and being an avid golfer I was reading an article in Golf Digest magazine. The article stated that the top 100 golfers in the world were actually on a very similar skill level with each other. The difference between the bottom 90 golfers and the top 10 golfers, was their mental game. The article continued to say that the top five golfers in the world regularly invested in a golf psychologist to remain at the top of their game.

These golfers understood the necessity of golf psychology and each of us as traders should understand the necessity of mastering trading psychology. Just as golfers know, we too know that psychology plays a huge role in the success of our trading.

Not A One-Time Event

Trading psychology is not just a quick one-time event. Trading psychology is on-going, constantly moving forward, constantly growing, constantly understanding more about yourself, creating discipline, shaping your future and ultimately becoming a success in life not just success as a trader.

I don’t know about you, but since this is how I make my living I will always remember that I can master trading psychology. I will remember that investing in my trading psychology, like hiring Dr. Rebecca Winton, staff psychologist at Trade Indicators is an investment in my long-term trading and worth the time and the money. As we often say, some things are a worthwhile investment into you!


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