The art of trading Forex or the stock market requires a good understanding of trading psychology. Having a strong mental mindset along with a risk management strategy will help you overcome more difficult parts of trading. Fear is the biggest killer amongst traders, making them overreact and break out of their trading plan. Having discipline will enable you to keep focus on the market.
Traders are fearful in a winning position and hopeful in a losing position
Trading Psychology Interviews
Unfortunately, the psychology of trading is rarely covered and often leads to beginner traders losing all their money. Joel's interview on Chat With Traders is one of many talks that help to explain the psychology aspects of trading. We interviewed Harley Therapy™'s Clinical Director & Senior Psychotherapist, Dr. Sheri Jacobson to help traders understand what they can do when they become stressed.
Two of the best authors of trading psychology are Brett Steenbarger and Mark Douglas. Both have written many books on the psychology of trading and renowned for their work. Check out the full list of psychology trading books under the page.
These next sections will help you to embrace winning, losing, stress reduction and knowing when trading isn't for you.