The psychology of money can be complex for a trader. Trading can bring up a whole host of emotions and feelings that can mess with your psychology. In this episode we talk about how traders can keep their emotional intelligence on track with their finances.
Click here or in the video to get your money mind in order.
Doing well with money has little to do with how smart you are and a lot to do with how you behave.
Ordinary folks with little financial education can become tremendously wealthy if they follow a handful of behavioral skills.
I see many “less educated” people come into the trading business and do tremendously well. While many highly educated people like engineers, doctors, and lawyers are often more likely to struggle with profitability.
This is because many aspiring professionals are looking for rules and laws about how the market works. Rules and laws about how Implied Volatility works. They’re also looking for trading rules about how to consistently take advantage of the rules and laws that the markets are following while missing the point that the market is not following rules and laws.
The market is driven by emotional behaviors and it is the expectation that the market is going to follow these rules that often prevent many traders from becoming successful.
Fear, greed, uncertainty, and overconfidence is what drives market price and Implied Volatility, not rules, not laws.
In order to understand the market we need to work on trying to understand the psychology of money.
The goal of the Trading Performance Podcast is to help everyone to gain important insights into the stock market and how a trader can improve their performance in it.