Trading Psychology

Many individuals have good trading strategies with an edge, but are unable to follow their rules, processes or routines which would make them consistently profitable. Some are trading systems that don't take into account their psychological needs around risk tolerance. Or are able to address the psychological turmoil that emerges from maladaptive defenses around loss and gain that were developed early in life.  Other traders are bewildered by the decisions they made and don't even understand why they did what they did. There are degrees of emotional trading, from choking the trade, to taking larger losses, to going on full "tilt".  “Tilt” refers to an emotional state of mind where their rational self is hijacked. Where the trader is making all their decisions on pure, often very intense, arbitrary emotions.  It can show up as revenge trading, excessive risk taking, or freezing up unable to exit a losing trade.  They are completely disconnected from their logical mind and awareness. Neither their strategy, chart analysis, or processes are in the driver's seat.

Many are under the misconception that discipline boils down to willpower. Some give up hope they'll ever be able to successfully overcome obstacles to discipline. It can be incredibly difficult to accurately assess exactly why, when, and where one is making emotional decisions on their own. It can be challenging to break unprofitable cycles of letting losses run and choking winners, from winning big to giving it all back and being stuck at breakeven. Trading psychology consultations differ from the coaching I do around trading methodologies and repeatable processes.  Psychological coaching is more intensive and focused primarily on mastering skills to be able to identify and regulate what interferes with your trading discipline. The focus is on what is going on inside you, rather than building up your strategies, guidelines or routines. 

Whether you have a minor, serious or chronic 'problem' managing your trades or you simply want to optimize your performance, working on your psychology pays dividends that reach far beyond just trading.  I've repeatedly found that trading is a microcosm of life. Traders I've worked with have repeatedly told me they've experienced significant development and improvement in not just their trading, but also their personal life.  I'm not a psychiatrist. I'm a coach with 27 years of trading experience, insight and a passion for psychology.  Please email me at Psychology@zazencapital.com before reserving consultation time with a brief summary of what you need assistance with and to confirm that I'm accepting new clients.