Trading Psychology for retail investors

Trading Psychology for retail investors

We are reading a book called Trading Psychology 2.0. We will share our learning through this blog so that everyone doesn't need to read the whole book. Read carefully and try to implement it.

Learning from Trading Psychology 2.0 book

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1. Emotion and fear distort the information processing on the chart and various data points which trigger various impulsive behavior, include averaging on loss marking trade, small profit booking, fear of loss booking.
2. Sustained success in the stock market required positive performance, adoption to change, flexible, creative and Psychology well being. 
3.  Flexibility: To become the best trader you need to be adaptive and flexible with changing situations. A good trader alters their exposer, risk to the situation when the market did or did not meet the expectation. 
4. A good trader learns new skills, widen their trading horizon like trading in options, futures, commodity or currency. It creates an alternative for them.
5. Productivity: A good trader generate good ideas because they generate too many ideas. Their success ratio is not high but they try to win every time when they win they win big and when they lose they lose small. They don't really one trading idea because they generate a lot.
6. They generate ideas based on data points. They cut the noise focus on the productivity to generate ideas and ready to play the next day to hit a home run.

We will update this blog regularly as we are reading the book.

Important Links for learning

1. Volume spread analysis - technical analysis stock market
2. How to find the stock value of a company?
3. How to calculate the stock price from eps?
4. how to accumulate stocks? how a professional trader accumulate stocks?
5. Checklist for intraday trading in the stock market?