TRADING PSYCHOLOGY To be a successful trader, your intellect and emotion must work as one team.”

There are three main areas we need to master to become successful traders – •  Trading Strategies •  Money Management •  Working with our emotions

“Why am I not able to pull the trigger, even when I am right?”

Should I? Shouldn’t I?

Shouldn’t I? Should I?

Can’t decide

“How could I lose?”

Aghh! Loss again….. What’s wrong with me?

Can’t take losses

“Why do I lose my winnings in blow-out trades, repeatedly?”

Many moderate wins = One giant loss

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Fund account

Learn Trading Method

Apply Trading Strategy

Make profits

Control emotions

Get greedy

Lose money

Get fearful

Blow up account Close account

Consistent profits

Open account

Your mental conditioning

Forex Trading System

CONSCIOUS MIND

UNCONSCIOUS MIND

B O D Y

Personal Experience

Watch Charts

Click to enter/exit

Driving force

Health Blueprint

Wealth Blueprint

Love Blueprint

Happiness Blueprint

HOMEOSTAS I S

CONSCIOUS MIND

UNCONSCIOUS MIND

B O D Y

Bio-feedback

Pay attention to your body

signals

Visualization Affirmations

Faith

Conditioning changes, Performance improves

THE LINK

(Step 1)

(Step 2)

(Step 3)

I am happy while trading

I am stressed while trading

I am alert & energetic while trading

I am anxious while trading

I am capable of making successful trades

I blame myself for my losses

I am in control while trading

I make impulsive decisions while trading

I am satisfied with my trading results

I get edgy and frustrated while trading

1 – Rarely 2 – Occasionally 3 – Sometimes 4 – Frequently 5 – Almost always

Your Emotional Experience while Trading

§  Trading is a business §  A Trading Plan is a guide for running this business §  A good Plan addresses all three aspects of trading – Method, Money and Mind.

TRADING PLAN

TRADING PLAN

§  Master the Method §  Strategy may vary depending on market

conditions §  Markets are unpredictable – flexibility is

required.

§  A good understanding of risk and reward – Money Management §  The potential Profit and Loss in a trade are equally important §  Stop Loss to limit loss; Trailing Stop to maximize profits

TRADING PLAN

TRADING PLAN

§  Last, but not the least, is the Mindset.

§  Relaxation techniques §  Awareness of body signals and emotions

§  Think PIPs - not Money

§  Start your trading session with a few Relaxation exercises

§  Energize yourself either through faith or motivation

TIPS (Body)

§  Have a Trading Plan you are comfortable with §  Understand your relationship with money §  Learn Money Management techniques – in the real world they are as important as trading techniques

TIPS (Conscious mind)

§  Pay attention to your Body Signals while trading §  Keep a Trading Journal with details of your trade and also what your emotions were during that trade §  Pay special attention to your emotions when you face a loss §  Be aware of Negative Self-talk

TIPS (Unconscious Mind)

§  Use affirmations and visualization to keep up your positivity §  Give Gratitude – not many in this world have the opportunity to sit at home and make money!

TIPS

A good trading day is one in which you follow your Trading Strategy in a calm and confident manner, making sure that, at the same time, you are managing your money well – when in gain or loss. This, in turn, will enhance your profits and consistency, making you a truly successful trader who can trade for a living!

Thank you!