Psychology can have a surprisingly powerful influence over your success as a trader. Emotional responses can even undo all the good work you’ve put into studying the markets and planning your strategy – so it’s important to know how to stop this happening.
In this course you’ll learn how to recognise when your feelings are getting in your way, damaging your judgement or driving you to trade in a way you shouldn’t. We’ll explain some ways to handle those emotions and minimise their effect.
And we’ll show you how to avoid some of the errors that traders frequently make. Knowing a few simple tricks and techniques should stop you falling into these common traps.
Controlling emotions that hold you back4 min
Controlling emotions that entice you to trade4 min
Controlling emotions that cloud your judgment5 min
Developing an unbiased, positive approach4 min
Common trading mistakes: part one6 min
Common trading mistakes: part two5 min
Common trading mistakes: part three7 min
Example lesson: misunderstanding trends
In this course you’ll find exercises, charts and illustrations to guide you through every aspect of trading psychology and how it can affect the performance of your positions. To give you a flavour of what to expect, here’s an extract explaining how market trends can be misunderstood:
Imagine the Dow Jones has been steadily moving upwards over the long term, when a worse-than-expected non-farm payrolls report causes it to tumble. Does that mean it's now in a downtrend?
Inexperienced traders might assume the answer is 'yes', but in fact that's unlikely to be the case.