Presented the Psychology of Trading to become a successful trader. Keeping every slide in mind makes you a discipline trader.

2. What is Trading Psychology?
• refers to all the human impulses that have an
effect on the market
• Most of what you do while you are trading,
takes place within your own mind.

3. What is Trading ?
 Buy low and sell high or sell high and buy low
 Simple as the game you played, uncertainty and
emotions makes it difficult

4. How do we trade ?
 Gut feel
 Fundamental understanding
 Technical understanding
 Self-research
 Levels based
 Using Mathematics

5. What do you need to do to give
yourself a chance?
•DISCIPLINE
•HARD WORK
•ANALYZE AND LEARN FROM MISTAKE
•BELIEVE IN YOURSELF
•BE AGGRESSIVE
•BE HUMBLE
•BE AMBITIOUS
•THINK AND EXECUTE

6. Emotions within your mind while trading

8. Greed
Only way to make consistent money in the market, is by
having PATIENCE.

9. Euphoria
Self-confidence Over-Trading
Over-Trading Loss

10. Fear/Doubt
Controlling risk per trade properly will go a long
way in helping you avoid having too much fear of
trading.

11. Hope
Don’t get your hopes up for any one trade!
Relying and praying during trading

12. Regret
A missed trade that would have been a nice winner
Exiting trade just before it surges in your direction

13. Anger/ Frustration
Want to take revenge on market (Revenge Trade)

14. Lack of floor discipline
Using too much phone during trading hours.
Unnecessary leaving your place during trading hours
 Unnecessary taking holiday break/ leaves

15. Unreal trades
Counting your LUCKY trades as good trades
Doing/copying other trades to make money

16. MYTHS

17. People think that:
• Trading - it's easy!
• Trading - this is freedom!
• Trading - is incalculable riches!
• Trading - this is a game!
• I am smart, therefore I will be a successful
trader
• I am competing with the other people of the
firm
• Trading is luck, its same as gambling

18. Rules of successful trading

19. Your psychological state of mind is
more important than your dollars
You can recover your monetary loss in the next trade but
recovering your lost state of mind might take a while
Don’t trade/trade less if something is bothering you or
you are unwell. Best to speak to your manager
Don’t trade right after a short break
RULES

20. Don’t ever try to pick absolute tops and
bottoms
 Don’t look to pick the absolute bottom or top and ride
the market on the reversal
Successful once or twice but eventually take a big hit
Word of Advice: You don’t have to catch the falling brick
or the flying bird
RULES

21. Trading runs in cycles.
 There are good day and bad days, there are good weeks and
bad weeks, there are good months and bad months.
Don’t let a bad day, week, or month put you down. Learn not
to measure results in the very short term.
Many traders give up after having three or four bad days.
Don’t! Know that its part of the business.
Hang in there, manage your money well, be persistent and I
promise you it will pay off!
This is the same for life, eh?
RULES

22. KEEP IT SIMPLE!
Don’t think that the more indicators and patterns you use
the more profitable you will be.
Many trading strategies are simple BUT original. You will
learn through time that the true gems in the market
originate from simplicity.
This is an important concept, don’t dismiss it.
RULES

23. Be patient with your profit targets.
 It is very tempting to grab the profits in a winning position
before the profit objective is reached.
There is a fear the market will turn around and the trade will
become a loser. Be disciplined.
Frequently taking profits before the profit objectives are
reached will destroy your whole risk/reward ratio and will finally
be the difference between success and failure.
Good sense, especially if you've already done your
homework and you're confident that sooner or later,
your price targets will be hit.
RULES

24. 95% of traders are not disciplined and
that is why they do not succeed.
They always know better than their system, they always know
better than what the market is telling them.
Be amongst the 5% disciplined traders
and you will be light years ahead of
the crowd.
RULES

25. Think, analyze, and create BEFORE the trade.
 During the trade only follow what you thought, analyzed and created
before the trade.
 Before you enter the trade you are cool and balanced, you are
thinking logically. During the trade you are under fire since money is
involved. You are under pressure.
 As a trader, the time when you're most 'sane' is when you don't have
a position open. Most of the time, beginner traders can go emotionally
bonkers when they have an open position that's fluctuating up and
down.
That's why following the rules are so important!
RULES

26. Know the personality of the instrument
you are trading.
Each instrument has its own individual “personality”. This
can be in terms of volatility, spread, liquidity etc.
This one comes over time, observation and trading
experience. Sometimes, you get sort of a 'shortcut' when
someone else shares their observation with you. In the
end, you've still got to observe it for yourself.
RULES

27. Take advantage of the clock
- Too early in London
- US is sleeping
RULES

29. Appreciating the moment
You need to feel calm and relaxed
Appreciate the process of trading.. Don’t always focus on
prize.
By appreciating your ongoing trade moment by moment,
you will not only have more fun, you will end up more
profitable in the long run.

30. A fresh start
Treat each trade as an emotionally independent
event
With each trade you make, start fresh.

31. Don’t be dazed and confused
Remain calm and decisive.
be careful

32. Don’t get burnout easily
Try to effectively cope with significant stressful events
Cultivate as sense of balance between work and
personal life.

33. Moving beyond mediocrity
Always look for innovative trading strategies.
Put great deal of effort to achieve profitability and
maintain it.

34. When you fall off - Rise
When you feel beaten by the market, it is often wise
to stand aside for a little while, and return when you
are rested , relaxed and ready for action.

35. The intrinsic rewards of trading
Ask yourself ? Why am I trading ??
Money /profits- extrinsic
Process of trading provides intense experience,
increases your risk appetite, control over emotions such
as fear, anxiety and self-reproach.

36. The courageous trader
The courage traders may persist and face danger
head on, but they also protect themselves
Manage risk
Sometimes its better to take potential harm.

37. The confident trader
High self confidence is equated with high levels of
ability
Confident trader know when to trade and when not to.

38. Using your intuition
Don’t confuse intuition with into-wishing
Over time, with vast experience and practice you will
able to realise