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TRADING #101 COURSE – PART II TWO: SUCCESSFUL TRADING PIE – WWW.TRADERSCOACH.COM

You may be saying, “That would never happen to me,” but believe me, it can happen.

15 Destructive Psychological Trading Issues and

Their Causes

This list of 15 issues is useful in troubleshooting common problems that many traders
experience. You may experience a combination of these, or you may find that you are
facing challenges that are not on this list. The key is to confront any emotional issues
that arise head-on so that you can eliminate them before they have a chance to
negatively affect your profits.

1. Fear of being stopped out or fear of taking a loss. The usual
reason for this is that the trader fears failure and feels like he or she
cannot take another loss. The trader’s ego is at stake.
2. Getting out of trades too early. The trader is relieving anxiety by
closing a position. Fear of position reversing, and then feeling let down.
Need for instant gratification.
3. Wishing and hoping. The trader does not want to take control or take
responsibility for the trade. Inability to accept the present reality of the
marketplace.
4. Anger after a losing trade. There is a feeling of being a victim of the
markets. Unrealistic expectations. Caring too much about a specific
trade. Tying your self-worth to your success in the markets. Needing
approval from the markets.
5. Trading with money you cannot afford to lose or trading with
borrowed money. Trading seen as last hope at success. Trying to be
successful at something. Fear of losing your chance at opportunity. No
discipline. Greed. Desperation.
6. Adding onto a losing position (doubling down). Not wanting to
admit your trade is wrong. Hoping it will come back. Ego at stake.
7. Compulsive trading. Drawn to the excitement of the markets.
Addiction and gambling issues are present. Needing to feel you are
always in the game. Difficulty when not trading, such as on weekends.
Obsessed with trading.
8. Excessive joy after a winning trade. Tying self-worth to the markets.
Feeling unrealistically in control of the markets.
9. Stagnant or poor trading account profits—limiting profits. Feeling
you don’t deserve to be successful. You don’t deserve money or
profits. Usually psychological issues such as poor self-esteem.
10. Not following your trading system. You don’t believe it really works.
You did not test it well. It does not match your personality. You want
more excitement in your trading. You don’t trust your own ability to
choose a successful system.

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