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Trading Psychology   Dmitry Grebenyuk, Private trader, consultant Russia, Chelyabinsk, November 2009
95% lose money 1 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],1. From the book "Intraday Trading", Van K. Tharp
The reason for failure - high expectations  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Cause of failure - in the man  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Fear  Fear  - negatively stained emotion or feeling associated with a sense of danger, real or imagined.   … And suddenly I now open a position, but it goes against me? … It should be possible to record profits, and then suddenly now thearket will unfold!
Greed  Greed - excessive desire of possession or consumption  . … Now I come to all margins and earn 100%!  …I'm in no hurry to fix 20% of the profits, because the price could rise even higher!
Complacency  Complacency - the property of the individual, the core of which stands a positive assessment of the individual's own skills and abilities as sufficient to achieve meaningful goals for him and meet his needs.  … Last month I earned 100% profit in the next month I make 1000% profit   …Stop-loss put only fools and cowards, I did the bravest and the smartest
Hope  Hope - painted a positive emotion associated with the expectation of meeting the needs; expectation benefits / grace, from the higher forces / entities / elements.  … Well, now the price have to go in my direction. Trading indicators tell me about it!   … Lord God, I'm so good, let the price go my way! Please!
Cause of failure: human weakness  FEAR  G REED Complacency   HOPE TRADER And where there is weakness, there appear emotions. Negative emotions.
95% choose the emotional Trading  ,[object Object],95% of traders fed the exchange industry (the stock exchange, brokers) and the remaining 5% of successful traders
Emotional Trading - a way to stress  Stress hormone   Corticosteroids (cortisol, glucocorticoids)   Catecholamins (epinephrine and norepinephrine)   Muscle tissue breaks down and turns the tissue proteins into energy. Cortisol during intoxication are possible: peptic ulcer disease, loss of muscle weight, aging skin, brittle bones, insomnia,  reduced immunity, increased blood sugar,  decrease testosterone, cellulite, etc.  Becomes more frequent palpitations, Increases blood pressure, Reduces digestive Activity ... ... Leads to hypertension  Problem situation (causes of stress)   Current state: acute stress   Cumulative effect stress: chronic stress   Stress Disorders   Physiological discomfort Acute emotions Of memory and attention Violation processes decision Disorganization of behavior Violation of communication  Anxiety Aggression Depression Asthenia Sleep disorders and dob   Psychosomatics The syndrome of emotional "Burnout" Type A behavior (or coronary behavior) And dob
Salvation - rational trading  ,[object Object],[object Object],[object Object]
Rational trading: two ways  ,[object Object],[object Object]
Holy Grail is not  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Terms of rational trading:  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Terms of rational trading  (continued): ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Even rational trading does not save you from stress  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Antistress methods:  ,[object Object],[object Object],[object Object],[object Object]
Hormones "happiness"  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Conclusions  ,[object Object],[object Object],[object Object],[object Object],[object Object]
Conclusions (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
List of recommended literature  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Thank you for your attention!  ,[object Object],[object Object],[object Object],[object Object],[object Object],Thales was asked: -What on earth is difficult? -Know yourself -What is easy? -Advise other (Diogenes)

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Trading Psychology and Overcoming Emotions

  • 1. Trading Psychology Dmitry Grebenyuk, Private trader, consultant Russia, Chelyabinsk, November 2009
  • 2.
  • 3.
  • 4.
  • 5. Fear Fear - negatively stained emotion or feeling associated with a sense of danger, real or imagined. … And suddenly I now open a position, but it goes against me? … It should be possible to record profits, and then suddenly now thearket will unfold!
  • 6. Greed Greed - excessive desire of possession or consumption . … Now I come to all margins and earn 100%! …I'm in no hurry to fix 20% of the profits, because the price could rise even higher!
  • 7. Complacency Complacency - the property of the individual, the core of which stands a positive assessment of the individual's own skills and abilities as sufficient to achieve meaningful goals for him and meet his needs. … Last month I earned 100% profit in the next month I make 1000% profit …Stop-loss put only fools and cowards, I did the bravest and the smartest
  • 8. Hope Hope - painted a positive emotion associated with the expectation of meeting the needs; expectation benefits / grace, from the higher forces / entities / elements. … Well, now the price have to go in my direction. Trading indicators tell me about it! … Lord God, I'm so good, let the price go my way! Please!
  • 9. Cause of failure: human weakness FEAR G REED Complacency HOPE TRADER And where there is weakness, there appear emotions. Negative emotions.
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  • 11. Emotional Trading - a way to stress Stress hormone Corticosteroids (cortisol, glucocorticoids) Catecholamins (epinephrine and norepinephrine) Muscle tissue breaks down and turns the tissue proteins into energy. Cortisol during intoxication are possible: peptic ulcer disease, loss of muscle weight, aging skin, brittle bones, insomnia, reduced immunity, increased blood sugar, decrease testosterone, cellulite, etc. Becomes more frequent palpitations, Increases blood pressure, Reduces digestive Activity ... ... Leads to hypertension Problem situation (causes of stress) Current state: acute stress Cumulative effect stress: chronic stress Stress Disorders Physiological discomfort Acute emotions Of memory and attention Violation processes decision Disorganization of behavior Violation of communication Anxiety Aggression Depression Asthenia Sleep disorders and dob Psychosomatics The syndrome of emotional "Burnout" Type A behavior (or coronary behavior) And dob
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