Article Five Guiding Principles of Trading Psychology

T2W Bot

Staff member
1,467 68
I recently participated in an online chat presentation for John Forman where I assembled my ideas into ten basic principles that have guided my thinking about the psychology of traders and the psychology of markets. In the very near future, if my testing continues to be promising, I hope to present a market indicator for swing traders that rests firmly upon these principles.  In the interim, here are the five principles that pertain specifically to trading psychology and in future I will also give  five principles for trading the markets.
Principle #1: Trading is a performance activityLike the playing of a concert instrument or the playing of a sport, trading entails the application of knowledge and skills to real time performances and this is the core idea behind my most recent book.  Success at trading, as with other performances, depends upon a developmental process in which intensive, structured practice and experience over an extended time yield competence and...
Continue reading...
Last edited by a moderator:


6 0
Great Words

Very intresting ariticle. I do agree with these principles and I do believe that our trading stlye or strategies are the extention of our personalities. One thing Im very much impressed with in your article is the conclusion. Im really moved by the question you tossed up in the end "<span style="font-family: 'Trebuchet MS', sans-serif; line-height: 19px;">Are you engaged in a structured training process?" </span>

<span style="font-family: 'Trebuchet MS', sans-serif; line-height: 19px;">Thanks a lot trader for sharing your studies.</span>

<span style="font-family: 'Trebuchet MS', sans-serif; line-height: 19px;">

Eric Geddes

81 10
I'm surprised there hasn't been more comment on Steenbarger's article. His 5 principles crystalise what I've now found to be true after many years of trading. Training & pattern-recognition are key, in my opinion.


2 0
Brett, your insights are very helpful. I just started reading your TraderFeedBlog (I know it is no longer updated) but it is really wonderful. I am gonig to buy your coaching.

As a side note to Training. Trading in the Zone has a great idea for traning that I have been using.

Take a block of 20 trades and trade your trading plan. It has to be followed 100%. I am on trade #18. This process has been very helpful. I journal my reason for each trade, and (as you have said Brett) do I really have an edge to take that trade.

The entire process has been very eye opening. I have seen myself wanting to trade when it did not fit my plan. In some cases I did and in those cases I lost, or out of pure luck of the draw I made a small return.

I have been in and out of trading for years. Training is key, and getting back to basics.
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock