Trader Psychology
Thought Patterns & Handling a Trading Downturn
Psychology is a huge part of trading as it is in any performance endeavour. Your frame of mind when trading will have direct implications on your actions and therefore your pnl (profit a’n’d loss). A destructive thought pattern will lead to poor trading feedback through the pnl, which results in a negative feedback loop into your emotions and back into your trading actions, a cycle that can be very difficult to stop. It can sometimes be quite difficult to determine when you might start to slip into this negative feedback loop but quite often the sequence experienced by traders tends …