Page 12 - Study Session 5 - Psychology Home Study Course
P. 12
Markets
• When you are short-term trading, you are trading the psychology of the markets and ultimately
trading against your own psychology!
• "As traders we want to take advantage of other trader's emotions such as fear and greed which
have been present in the markets from their beginning. Recognizing and exploiting these
emotions will always be a factor in successful trading. In order to be a successful trader, you
must not fall prey to the very emotions you are trying to exploit. In order to do this your beliefs
must be structured to avoid creating the emotions in which you are trying to exploit!”
• "We at TradersCoach.com believe that most traders incorrectly view the markets from purely a
"linear" mindset and instead should view the markets from a "nonlinear" mindset as the
markets are "nonlinear" themselves. This is why rigid logical thinkers or "linear intellectuals"
find trading the markets so frustrating. Since they operate from their logical "linear" "beta"
mind state, and become frustrated when market behavior does not do what it "should.“
Bennett McDowell, Trader, President, & CEO Of TradersCoach.com
