Monday, April 29, 2019

Trading Psychology: How to Improve Your Trading Results

Many traders focus on their results--their P/L--and never make the process changes that could lead to sustained results.  A great deal of writings in the area of trading psychology emphasize the changes that traders should make--not actual techniques traders could employ to make those changes.  When I wrote The Daily Trading Coach, the idea was to create a "cookbook" that would help traders coach themselves, using established, proven techniques from applied psychology.

It's time, however, to update those "how-to's".  In the most recent Forbes article, I explain how evidence-based approaches to short-term therapy can be adapted to help us achieve peak performance in our trading--and in our personal lives.  This is a major development in psychology.  Until recently, change techniques have been used to help troubled people reduce their problems.  They have equal value, however, in achieving positives as "therapies for the mentally well."

In future posts and presentations to trading groups, I will be elaborating the how-to's of trading psychology, drawing upon techniques proven in their effectiveness based upon outcome research.  (This book, which I wrote/edited with two colleagues at the medical school where I teach, reviews the research going into each of the methods.)  Three of the specific approaches are covered in the Forbes article and will be a starting point for future posts:  behavioral techniques; cognitive exercises; and solution-focused methods.  As always, thanks for your interest and support!

Further Reading:

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