An easy approach to trading psychology: How to apply the psychological strategies and attitudes of winning traders to online trading.

By Stefano Calicchio

What do the profits of winning traders depend on? How much does psychology count in their trading? Is success in trading just a technical question or do the psychological characteristics of each person also have a profound influence? 

The answers to these and many other questions can be found in the first practical handbook of trading psychology. This guide was created to take you by the hand and introduce you to the world of stock market psychology. Inside it concentrates all the basic concepts of the subject, without too much dilution or waste of time; from the psychological advantages of winning traders to the development of the business plan itself. From mental and operational insurance to trade management, money management and risk management. All the information is provided in a simple, practical and accessible way and will allow you to quickly acquire the initial knowledge. Stop wasting time and find out immediately how the psychology of trading works with this operational guide.

• Language: English
• Publisher: Stefano Calicchio
• Release date: Apr 30, 2020
• ISBN: 9788835819813

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Disclaimer

This book in no way constitutes advice or a solicitation of public savings. Trading in the stock market is a risky business. What is shown in this manual is the result of years of study and operation, so there is no guarantee that such results will be achieved. The results obtained by the author in the past offer no guarantee of future earnings.

The reader is fully aware of and responsible for his or her economic and financial decisions, i.e. he or she is aware of the risks associated with any type of operation.

The case studies and examples contained in the text are the result of facts and opinions that may be changed at any time without notice and do not constitute a solicitation to buy or sell public securities or savings.

The reason why these cases are presented is to provide elements of market research, so that they cannot be considered as definitive forecasts and do not protect against the risk inherent in stock market investment activities.

With the presence of this disclaimer the Author declines all responsibility for possible inaccuracies in the reported data, damages, economic losses, direct or indirect damages derived from the use or disclosure of the information contained in this book.

Introduction

How much does an investor's psychology and mental focus influence the results of online trading? Since the birth of technical analysis applied to financial markets, the great upward and downward movements have found a valid explanation not in mathematical formulas but in the greed and fear of the participants.

The rational investor, who is able to analyze the exact performance of the stock market, buying on the downside and selling on the upside, simply does not exist. This is because these lows and highs are not the result of linear reasoning, but rather the result of greed and fear attitudes that cyclically take over the markets.

Even today, where the trading activity of the big players and institutional investors is carried out by means of elaborate automatic programs, these concepts are still more than valid, because to create and direct the trading programs are always and yet the human minds.

Therefore, the real challenge to be faced in choosing the path of online trading is not how to beat the market, but rather how to beat the archetypes that have just been exposed. Successful trading means, first of all, learning to control and manage the innate tendencies of euphoria and fear within each of us.

This guide does not attempt to address the subject comprehensively, and perhaps no book will fully explain the psychology of financial markets.

But it can help the reader shed light on a subject that is too often left out of the equation, despite being so important and critical to the success of your trading.

Understanding the mechanisms of denial inherent in the minds of great traders, managing their emotions during the opening and closing of a trade, learning to maintain a balance in their trading and not getting involved