Video Tutorials: Psychology is the key to investor success

In this article, we are posting a block of video reviews that will help investors manage their emotions and make money.

1) Psychology of Trading: Learning to manage emotions. PART 1

Why do some stock market participants never get out of the negative side? What prevents them: lack of knowledge, skills, insufficient experience?

2) Psychology of trading. Learning to manage emotions. PART 2

Stock market participants most often lose money because they cannot exit a losing position in time. This is due to a social phenomenon called “consistency”.

Life teaches us that being inconsistent is bad, it is a sign of lack of logic and self-confidence. Therefore, at a subconscious level there is a desire to be consistent in one’s actions and look for confirmation of the correctness of one’s decisions in the outside world to the last. Exchange trading is very different from ordinary life. Therefore, in order to be successful in it, you will have to get rid of some social phenomena.

3) Psychology of Trading: Learning to manage emotions. PART 3

Losing money on the stock market is often connected not only with the inability to get out of a losing position in time, but also with an irrational desire to exit the market in the “green zone”. We discuss why people intentionally jump out of a profitable position, and also suggest how to set yourself up for the right mood, without giving in to the tricks of your own subconsciousness.

4) Psychology of Trading: Learning to manage your emotions. PART 4

Newcomers to the stock market make the fatal mistake of confusing trading and investing. Mixing up the concepts of trading and investing leads to people over-sitting in the negative zone.

Many people have heard that when trading on the stock market, it is necessary to average a position. That is, if the market goes against you, you should make the average price less than the original purchase price. This statement is true if you are engaged in investing. However, there is another rule for traders: “Average your position only when the issuer goes in your direction”.

5) Psychology of Trading: Learning to manage your emotions. PART 5

The loss of trading capital is often caused not by inexperience as such, but by some peculiarities peculiar to a person who has just started to gain experience in exchange trading.

Firstly, an inexperienced beginner, as a rule, does not have a clear trading plan. Secondly, he does not have a definite strategy, but has the illusion of having one. Thirdly, he is often characterized by psycho-emotional instability, which leads to chaotic actions. Fourthly, many people start trading without having sufficient capital, which creates additional risks.

In addition, beginners are characterized by misconceptions, each of which can completely destroy the account. The most important of them is the belief in the “holy grail”, in the existence of such a strategy that will allow you to win always.

But the most important thing that is the root cause of many, many mistakes in the market is fear. Fear leads to the desire to either hide, or run, or aggressively engage in conflict. In the stock market, a person behaves in exactly the same way. Fear leads to the loss of variability of behavior on the market, and you should always keep this in mind.

6) Psychology of trading: How can a beginner overcome his fears, and who is an ideal trader?

Alexander Petrochenko answers popular questions on trading psychology: Who is an ideal trader? What is the most dangerous emotion on the market? How can a beginner overcome his fears?

7) Trading Psychology: How to overcome the feeling that the market is playing against you?

Alexander Petrochenko answers popular questions on trading psychology: Why do novice investors often perceive a market decline as a tragedy? How to overcome the feeling that the market is constantly playing against you? Why is it so difficult to enter a position?

8) Psychology of Trading: How to save yourself from guilt and the account from loss?

The next installment will talk about guilt and its negative impact on the financial bottom line.

9) Trading Psychology: How to keep your trading account free from emotions?

Fundamental and technical knowledge may not be enough for successful trading on the stock market. There are many psychological and emotional traps for investors. Forewarned is forearmed. We suggest you to familiarize yourself with the main dangers and develop measures to combat them. Today we will talk about psycho-breaks and how to protect your trading account from them.

10) Trading Psychology: The Nature of Fear, or How to Make an Enemy an Ally

We talk about the feeling of fear, which an investor often faces at the most crucial moment. See another video lesson on how to turn an enemy into an ally.