Monday, December 12, 2016

A Simple Exercise to Cultivate Your Trading Psychology

Here's a great routine to further your trading psychology in the year ahead:

Each day, give yourself a letter grade in the following areas of psychological well-being:

1)  Happiness - Feeling joyful; doing things that are fun; enjoying what you're doing;

2)  Satisfaction - Feeling fulfilled; doing things that are meaningful; acting on your deepest values;

3)  Energy - Feeling invigorated; doing things that give you energy; getting full rest and physical exercise;

4)  Affection - Feeling close to those most important to you; doing things that bring love and closeness; connecting with others you care about.

Each day you receive a C grade or below in one of the areas, you set a goal to bring that grade higher the next day by actively scheduling experiences that will bring well-being.

Track your day's productivity and the quality of your trading as a function of your daily grades.  See first hand how your trading is intertwined with your trading psychology.

Improving your trading psychology is just like improving your trading:  it's all a matter of ongoing deliberate practice.

Further Reading:  Can Successful Trading Be Taught?