Too many traders struggle with the emotional side of trading and investing.In this episode, we'll uncover an awareness traders need to realize in order to proceed forward and find profits and the kind of success they deserve and desire.we're going to talk about something near and dear to many trader's hearts. Trading psychology. There's many components to trading psychology, but for this sliver of knowledge, we'll discuss the thing that sits between our ears. Our brain, but it's not just...
Too many traders struggle with the emotional side of trading and investing.
In this episode, we'll uncover an awareness traders need to realize in order to proceed forward and find profits and the kind of success they deserve and desire.
we're going to talk about something near and dear to many trader's hearts.
Trading psychology.
There's many components to trading psychology, but for this sliver of knowledge, we'll discuss the thing that sits between our ears.
Our brain, but it's not just our brain. It actually has an alter ego.
We'll gain an understanding of the difference between our brain and our mind.
The first question we'll answer is what's the difference between our brain and our mind?
Just as important as the fact that there is a difference.
We'll learn why there's a difference.
Why our conscious mind must be aware of the difference.
Once we're aware and only once we're aware, we'll be able to apply that awareness to our trading and finally we'll get one whopper of an eye opener, had a manage the psychological part of our trading, the emotional part of our trading and marry that together with the strategic part of our trading.
Let's begin to understand the separation of brain and mind.
Here's how we're going to define brain.
The brain is the dominant force. The brain is the animal force. The brain has the animal instincts. The brain is the dominant chart.
The brain is the monthly chart.
Here's what we need to know about the dominant force.
The brain holds the emotions that work against us while we're trading.
These are the emotions we need to learn how to manage the brain controls, fear, greed, passion, Fomo, fear of missing out anticipation.
We anticipate how much money we're going to make on a trade before the trade is over. We immediately move our stock to break even for fear of losing on the trade.
These are just some of the emotions that many traders fight every single day. Traders are fighting their brain. Who's on the other side of the fight?
Who's coming to the rescue? Our mind is coming to the rescue.
Our mind is the voice of reason. Our mind thinks rationally. Our mind thinks in probabilities. Our mind understands realistic profits.
Our mind understands risk reward. Our mind allows us to lose small and fast as taught in the course at LazyEMinTrader.
Our brain encourages us to trade on hopium - hoping the trade comes back in our favor.
We go through a couple of examples of how we balance the difference between our brain and our mind.
The struggles with our brain versus the rational thinking with our mind.
Our brain says we're missing out on opportunity. We feel FOMO - fear of missing out. We want in on the profits, so we hop in thinking we're going to ride the wave higher with everybody else.
Our brain wants in the trade. If we allow our mind to play a role before we get into the trade, we want to look farther.
We want to see if it's rationally appropriate from a chart perspective to get in the trade. We want to assess where our risk is.
We immediately do some of the things that are taught directly in the course at lazy mini trader, we go to a different time frame.
We want a different visual representation of what's going on. So while we're thinking of getting in the stock somewhere near the highs, our brain wants to play the momentum.
Our mind flips over to another chart and realizes we're at resistance. Our mind recognizes what just happened.
Knowledge is power.
When the voice of reason knows these things and the brain allows the mind to get involved, we then and only then begin to effectively manage our emotions during the trading day.
Our goal is to trade mechanically. Our goal is to trade rationally. The voice of reason needs to be the professional trader.
Hopefully this gives everybody something to think about and they can work on each and every day.
Understanding ourselves is the first order of business throughout any part of our lives.
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