Page 11 - Study Session 5 - Psychology Home Study Course

Applying This New Psychology To Trading

Understand:
 How your eyes & emotions can deceive you

1) What you “see” is not always as it looks
2) What you “feel” is not always rational

 That ultimately, you create your reality
 Your attitude reflects your beliefs
 Your beliefs create your reality

 That it is in your best interest to let go of everything you fear to
lose

Actions Steps:
 Create trading rules to take advantage of other trader’s irrational
emotions such as fear and greed

 Don’t fall prey to your own irrational emotions
 Identify your own irrational emotions and develop a strategy to
deal with them and control them so they do not interfere with your
rational approach to trading
 Think of winning, visualize winning, protect yourself from losses
with risk control