Trading Psychology Articles

Defining A Great Trader

Wed, 16 Sep 2009 11:56:48 GMT

Great traders that we have had the pleasure to know and to be around, on exchange floors and on trade desks, had certain repeatable traits that all level traders can learn, or take something from;

Five Fatal Flaws of Trading

Sun, 28 Jun 2009 05:12:32 GMT

If you've been trading for a long time, you no doubt have felt that a monstrous, invisible hand sometimes reaches into your trading account and takes out money. It doesn't seem to matter how many books you buy, how many seminars you attend or how many hours you spend analyzing

A Trade or a Gamble?

Sun, 11 Jan 2009 12:58:46 GMT

I love to trade a lot which is of course a euphemistic way of saying I love to gamble. Although I have been to Vegas more than a dozen times I never laid down so much as a dollar bet in any casino. I have absolutely no interest in

Serious Money

Sat, 06 Dec 2008 14:40:04 GMT

There is an article in this week's news section which is entitled How to Combat Over Trading. It's an issue that I tackle often in this column because it is probably the greatest source of pain for most traders I know. K and I are often amazed by emails we

"Follow-Through" -- It's Significance for Your Market Position

Thu, 21 Feb 2008 15:30:16 GMT

Patience is a virtue in most endeavors in life, and it's certainly a valuable asset in futures and stock trading. You will many times hear me use the important term, "follow-through," when I discuss significant market moves such as price breakouts or trend changes.

How to Handle a Losing Streak

Wed, 16 Jan 2008 10:20:57 GMT

Don't overtrade. If you are trading several markets and not having any success, cut back to trading one or two markets. You can follow fewer trades more closely and document your success or failures more easily. Plus, your trading account won't be drawn down so quickly.

Getting What You Really Want

Fri, 21 Dec 2007 11:09:37 GMT

I used to do an exercise in the Peak Performance 101 workshop entitled "Getting What You Want". The exercise starts out with a question: If you could have anything in the universe, what would it be? Perhaps your answer might be $10 million dollars. However, the exercise doesn't end there.

Self-Sabotage Revealed

Fri, 19 Oct 2007 14:10:02 GMT

In my peak performance training with traders, I give a strong psychological slant to the concept of self-sabotage. Self-sabotage typically occurs when one lacks the discipline to act in one's own best interest. For example, when you have dessert, knowing it's taboo because you are trying get healthy, you might

Hank Pruden on "Behavioral Finance" and Technical Analysis

Fri, 21 Sep 2007 11:57:21 GMT

Hank Pruden

Make An Honest Self Appraisal

Sat, 01 Sep 2007 02:50:31 GMT

If you are willing to accept total responsibility for your investment results, you will realize that you are the most important factor in your trading or investment success. If you have done that, you are way ahead of the crowd.

Behavioral Patterns That Sabotage Traders - Part I

Fri, 24 Aug 2007 13:39:01 GMT

Although I do not maintain a private practice of counseling/coaching for traders, it is perhaps inevitable that traders would contact me for assistance after reading my book on The Psychology of Trading. Once in a while I take on a project of working with a group of traders because of

Enjoy Bumping Into Walls

Fri, 20 Jul 2007 10:09:28 GMT

If you're in the market, one of biggest obstacles you'll face is the wall of losses. It's fairly difficult dealing with the markets if you are not willing to lose. It's almost impossible. It's like wanting to be alive, but always wanting to breathe in and not willing to breathe

Van Tharp Back-To-Basics Series

Fri, 13 Jul 2007 09:40:53 GMT

People get exactly what they want out of the markets. Most people are afraid of success or failure. As a result, they tend to resist change and continue to follow their natural biases and lose in the markets. When you get rid of the fear, you tend to get rid

Know When to Fold 'Em

Fri, 06 Jul 2007 10:54:46 GMT

One of the advantages we have as traders is that we do not have to trade. And it costs nothing to not trade. So the common solution is to only take a position in outstanding trades. And these are usually either trades that are moving strongly in your favor before

Do What You Love

Fri, 15 Jun 2007 11:44:41 GMT

So what does this have to do with trading and success? I've noticed that the people who are really successful in many, many fields start some sort of program of self improvement. I have mentioned many of those in past tips and the Artists Way is one of them. They

When To Quit Your Day Job

Fri, 25 May 2007 11:02:44 GMT

I have had many readers through the years--most of whom were less-experienced traders--tell me that at some point in the future they planned to quit their day jobs and trade futures full-time. While their optimism was certainly positive from the standpoint of eagerness to learn about a truly fascinating business,

Finding the Best Traders In The World

Fri, 20 Apr 2007 10:24:37 GMT

I was recently approached by a top hedge fund about profiling the best traders in the world. Profiling really refers to finding those psychological characteristics that will best predict success. And I believe that I'm one of the world's experts in that area since we have a huge database of

Using the "ADM" Method to Deal with Losing Trades

Fri, 20 Apr 2007 10:21:51 GMT

A main tenet of success in futures trading is the ability to accept losing trades as part of the overall trading process. This is not an easy undertaking--especially since many futures traders tend to be of a more competitive nature in the first place. Traders certainly don't have to enjoy

Peak Performance Trading Tips

Fri, 09 Mar 2007 09:56:49 GMT

The sixth key quality is that they all have a business plan to guide their trading. I've been talking about the importance of this plan for years. Most companies have a plan to raise money, but you need such a plan to help you treat your trading like a business.

Abell, Koppel Discuss Their Profitable Short-term Trading Methods

Fri, 02 Mar 2007 10:11:59 GMT

No short-term trading system is perfect. However, having and using a system is critical for short-term trading success, say Howard Abell and Bob Koppel. "A successful short-term trading system must be profitable, consistent, and personal--conforming to the unique psychological and methodological needs of the individual," they said.