Trading Psychology - Trading Education

Trading Psychology traditionally meant how to train your brain to behave as if it were a serially-updating computer program. As the Nobel Prize winning field of Behavioral Finance has shown, and the brain pictures from neuroeconomics are displaying, the human brain cannot do this.

Advanced trading psychology is about learning to understand and capitalize on the way our brains are designed to make risk/reward decisions and to interact with the living, breathing animal that is the markets.

Working with the brain's design instead of in conflict with it allows traders to better read the markets, reduce both impulsive and compulsive trading and pick their best spots for trade execution. These three benefits of advanced trading psychology results in greater profits in month-end brokerage statements.

Denise Shull, Founder and President of of Trader Psyches


Shifting Gears: The Transition from Trading Stocks to Futures - Part 4
By Denise Shull   

PART 4:

The Case for Stocks

Equities, of course, do present other sorts of opportunities. A few mentioned by Hubert Senters, a very successful trader who has years of experience trading, include the movement caused by sector rotations. If a given sector gets hot or cold, it often keeps moving in that direction regardless of the overall market. This inherently gives the trader both a direction and a group of stocks that can be traded in tandem.

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Shifting Gears: The Transition from Trading Stocks to Futures - Part 3
By Denise Shull   

PART 3:

Fewer Decisions in Futures

Of course, successful trading means choosing profitable entry and exit points. Like with the SPYs or DIA, trading the electronic futures indexes requires one less dimension of decision-making. Instead of having to pick a stock - based on technicals or fundamentals - and then get whipped around in it because of the overall market, one only has to form an opinion on the direction of the market for the time frame of the trade. As Adele Newton, a Boston-based trader who switched from stocks to futures says, "You only have to figure out market direction. Whereas with a stock, the market could be doing one thing, and the stock has news or the sector isn't doing well."

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Shifting Gears: The Transition from Trading Stocks to Futures - Part 2
By Denise Shull   

PART 2:

Finding a Broker

Of course, actually opening a futures account needn't be difficult. Aside from the mountain of paperwork, many good introducing brokers (IBs) exist. IB means "the firm or person that solicits and accepts futures orders from customers but does not accept money, securities or property from the customer." An IB must be registered with the Commodity Futures Trading Commission (CFTC) and must carry all of its accounts through a futures commission merchant (FCM) on a fully disclosed basis."

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Shifting Gears: The Transition from Trading Stocks to Futures
By Denise Shull   

PART 1:

A funny thing happened at lunch on Saturday. Joining friends from St. Louis who for many years have traded in real estate, I was asked by their guests the usual, "So, what do you do?" Trying to answer so as not to send them running, I answered softly and slowly, "Well...actually...I trade futures and also do some coaching of traders using principles from psychoanalysis."

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Understanding the Trading Psychology of Support and Resistance
By Dr. John Keppler   

In studying a chart for any liquid instrument, traders will observe that prices usually move in a series of peaks and valleys. The direction of these peaks and valleys provide us with a lot of valuable information about price action and direction. They also help us in determining the direction of a trend and levels of support and resistance. These valleys and peaks create opportunities for traders to enter or get out of trades. Professional traders always like to buy at support and sell at resistance, since these trades will usually have a much higher probability of success.

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How to Eat Lions - A Lesson In Trading Confidence
By Alex Wasilewski   

The zebras have been buying up all copies of this hot-selling reality book. What a boost to be able to turn around the victim mentality that has beleaguered the zebra community for thousands of years. Hey, it might just work; after all, zebras outnumber lions.

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Doing Nothing
By Abdel Ibrahim   

Believe it or not, I spend most of my days “doing nothing”. Yes, there’s a lot to do for RatioTrading (meetings, business calls, etc) and I am always managing my trades accordingly, but in all reality, I really do spend a lot of my time doing nothing.

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“If you don’t know where you are going, you will wind up somewhere else.”
By Jeff Quinto   

Yogi Berra had a way of stating the obvious when he said, "If you don’t know where you are going, you will wind up somewhere else."

However, obvious the importance of having a clear plan may be, many traders begin the trading day without any real plan.

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Why Pros Win and Amateurs Lose Every Time
By Barry Burns   

Amateurs think trading is about finding the perfect

  • Chart pattern
  • Indicator
  • Moving average
  • Trading system
  • Market guru
Pros have been down all of those roads...and found an empty pot at the end of each one.

So where is the pot of gold? Look within.

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What's More Important: Trading Method or Trading Psychology?
By Barry Burns   

Ancient argument: What determines success in trading?

1. A successful methodology
2. Psychology and discipline

Answer: BOTH!

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This website is for educational purposes only. Offers and events from 3rd party vendors are provided for convenience only. Trader Kingdom is not responsible for the content of a 3rd party website or their services.

Futures, options, and spot currency trading have large potential risk and traders should be well-educated before putting real money at risk. You must be aware of the risks and willing to accept them in order to invest in all markets. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. This website is neither a solicitation nor an offer to buy/sell a futures contract or currency.