Trading Psychology For Dummies

Trading Psychology For Dummies

by Roland Ullrich
Released August 2022
Publisher(s): For Dummies
ISBN: 9781119879589

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Book description

Keep your head in the game! Make smarter, confident trades in global markets

Trading is 80% psychology and 20% methodology. Trading Psychology For Dummies helps you develop the mindset you need to respond correctly in any market condition. Make more money on your trades as you develop mental strength, act confidently, and avoid the typical mistakes traders make when they don’t understand their own minds. This book is for traders with any portfolio size and any risk tolerance. With the clear and easy approach that has made Dummies investing books so wildly popular, you can take your trading skills to the next level. When you stop underestimating how much your psychology governs your returns, you’ll discover ways to tweak your own thought process for better trading results.

  • Learn how human psychology influences decision making in financial markets and other areas of life
  • Discover advice and techniques that you can try right away to make more rational trades
  • Examine how institutional investors account for market psychology when they predict price movements
  • Earn better returns with the perspective of veteran traders who apply psychology-based techniques daily

Trading Psychology For Dummies gives an edge to novice and experienced traders alike. Gain confidence and maintain a flexible and open mind when trading.

Table of contents

  1. Cover
  2. Title Page
  3. Copyright
  4. Introduction
    1. About This Book
    2. Conventions Used in This Book
    3. What You Don’t Need to Read
    4. Foolish Assumptions
    5. How This book Is Organized
    6. Icons Used in This Book
    7. Beyond the Book
    8. What’s Next
  5. Part 1: The Sovereign Trader
    1. Chapter 1: Brain-Compatible Trading
      1. Recognizing the Human Barriers to Trader Success
      2. Using Neurofinance to Look Deep Inside the Trader Brain
      3. Recognizing Typically Human Behavioral Patterns
      4. Leveraging Neuroscientific Discoveries
      5. Trading Success Factors
    2. Chapter 2: Developing Mental Strength
      1. Preparing the Mind
      2. Avoiding Trading Stress Traps
      3. Becoming More Resilient
  6. Part 2: Making a Successful Trade
    1. Chapter 3: Developing Your Personal Trading System
      1. Working with Demo Accounts
      2. Pattern Recognition: Where Practice Makes Perfect
      3. Recognizing and Developing Your Trading Strengths
    2. Chapter 4: Implementing Your Trading Plans
      1. Managing Your Opportunities Intelligently
      2. Balancing Opportunities and Risks (Risk/Reward Ratio)
      3. Resisting the Evolutionary Urge to Cash In
      4. Recognizing That Fear Is a Bad Advisor
      5. Gaining Emotional Distance
      6. Keeping Greed in Check
      7. Managing Losses: The Trader Psyche at Its Limit
  7. Part 3: Emotional Sovereignty
    1. Chapter 5: Seeing Trading as Personality Development
      1. Keeping a Trading Journal
      2. Getting to Know Your True Trader Personality
      3. Trading as a Team Sport: Avoiding Tunnel Vision
    2. Chapter 6: Practicing Mental Self-Coaching
      1. Benefitting from Self Hypnosis: Seeing Your Subconscious Mind as a Trading Ally
    3. Chapter 7: The Psychology of Coping with Losses
      1. Registering the Psychological Impact of Losses
      2. Developing Mental Strategies for Coping with Losing Trades
    4. Chapter 8: Adopting Techniques for Coping with Stress and Anxiety
      1. Harmonizing the Body with the Mind
      2. Working with the Images in Your Mind
  8. Part 4: Making Decisions Safely
    1. Chapter 9: Untangling Decision-Making's Hidden Path
      1. Recognizing Systematic Perceptual Disorders
      2. Tracing Selective Perceptions
      3. Dealing with Gross Oversimplifications
      4. Channeling Dangerous Emotions
      5. Maintaining an Overview in the Face of Information Overload
      6. Acknowledging the Perils of Storytelling
      7. Telling Trading Stories
    2. Chapter 10: Using Evolutionary Rules of Thumb
      1. Leveraging Mental Shortcuts When Under Pressure
      2. Fashioning the World You Want, Not the World That Is
      3. Practicing Humility Instead of Indulging in “I Told You So”
      4. Escaping the Dissonance Trap
    3. Chapter 11: Finding the Right Basis for Decision-Making in Trading
      1. Seeing Why Investors Hold On to Losing Shares and Sell Winning Shares Too Early
      2. Plumbing the Secrets of Success
      3. When Fear of Loss Makes You Lose Your Mind
  9. Part 5: Keeping Bad Behavior in Check
    1. Chapter 12: Avoiding the Obvious Mistakes
      1. Putting Reference Points in Perspective
      2. Synchronizing Risk Tolerance
    2. Chapter 13: Dealing with the Stock Exchange's Collective Misbehavior
      1. Living the Stone Age Life
      2. Caution: Contagion Ahead!
      3. Dealing with Information Overload
      4. Discovering Slowness
    3. Chapter 14: Getting a Better Grip on Your Trading Ego
      1. Dismantling the Myth of Learning from Your Mistakes
      2. The Illusion of Control: Not Having the Handle on Things You Think You Have
      3. Thinking That the World Dances to Your Tune
      4. Living with Hindsight Bias
      5. Reining in Overconfidence Bias
      6. Handling Optimism Bias
    4. Chapter 15: Fear: Your Constant Trading Companion
      1. Reckoning with the Dominance of Emotions
      2. Recognizing How Your Trading Fears Affect You
      3. Finding Your Way Out of the Fear Trap
      4. The Fear of Feeling Regret
  10. Part 6: The Parts of Ten
    1. Chapter 16: Ten Psychological Traps to Avoid When Trading
      1. Dismissing Demo Accounts Out of Hand
      2. Insisting On Flying by the Seat of Your Pants
      3. Letting Your Ego Rule the Roost
      4. Believing That Goals Are for Wimps
      5. Attempting to Bat 1000
      6. Indulging in Revenge Trading
      7. Overtrading
      8. Doubling Down to Recover Losing Trades
      9. Failing the Marshmallow Test
      10. Being (Unnecessarily) Contrarian
    2. Chapter 17: Ten Success Secrets of Mentally Superior Traders
      1. Gaining the Right Inner Attitude to Trading
      2. Adopting a Process-Oriented Trading Approach
      3. Prioritizing the Protection of the Capital in Your Trading Account
      4. Carrying Out the Necessary Mental Loss Management
      5. Exercising Mental Opportunity Management
      6. Staying Humble
      7. Taking Responsibility
      8. Keeping a Trading Journal
      9. Finding Your Personal Trading Style
      10. Maintaining the Balance between Cognition and Emotion
    3. Chapter 18: Ten Guiding Principles for the Perfect Trading Day
      1. Planning Out the Technical Aspects of the Day
      2. Planning for Unexpected Scenarios
      3. Managing Risks Beforehand
      4. Filtering Relevant Information
      5. Being Mentally Prepared
      6. Keeping Your Parameters in Mind
      7. Managing Ongoing Trades Professionally
      8. Controlling Your Emotions in Advance
      9. Evaluating Your Trading Day
      10. Learning from Your Mistakes and Developing Further
  11. Index
  12. About the Author
  13. Connect with Dummies
  14. End User License Agreement

Product information

  • Title: Trading Psychology For Dummies
  • Author(s): Roland Ullrich
  • Release date: August 2022
  • Publisher(s): For Dummies
  • ISBN: 9781119879589