trading psychology
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we can set you up with experts
Want to get started one on one with a professional who can help you develop a methodology that will stand the test of time? Meet with our psychology experts online or in person. Let them teach you:
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psychological self-assessment
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strategies to control risk
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daily methodologies to assess your trading
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how to know when problems arise and what you can do about them
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how to set up the right trading process for you
Psychology courses
develop the right approach
Once aware of cognitive biases, traders must develop strategies and a process that helps them overcome these tendencies. Traders must thoroughly understand bias and review their own behaviors, consider and understand their tendencies, and develop and incorporate a process that seeks to identify and overcome the errors in judgement.
This would include:
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develop policies and procedures and a plan
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thinking probabilistically
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always consider context, and how it may differ from the past
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planning and pausing prior to action
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considering alternate assumptions
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consider delay
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make predictions and test your theories
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be as objective as possible (what would someone else do)
trading psychology
how does psychology affect trading?
Behind each of our trades is a decision. How do we make that decision? Our brains process memories, emotions, and most of all perceptions, combined with a multitude of our previous events and outcomes, through that processing, we come to conclusions. Over years we develop shortcuts called heuristics to help us cope with the many minor decisions we face daily. These heuristics can lead to cognitive biases that may affect our understanding or judgements. Traders must be aware of our tendencies to take shortcuts, jump to conclusions, and our biases that might lead us to erroneous judgements.