Unveiling Trading Psychology: Finally Discovering the Secret of Trading

The Trader’s Psychology

You must understand that all of us are emotional beings. Yes, that includes you too. Even men cry. And trading is a field dominated by men, where their arrogance is laid bare. Whether trading tens of dollars or millions, emotions will emerge and affect you.

Once you commit capital, price movements—whether favorable or unfavorable—will tug at your nerves, stirring countless emotions. Your mind bounces around like a rubber ball, pulled in all directions by these conflicting feelings, trapping you in a complex psychological state.

Traders constantly experience extreme emotions—one moment they’re excited, elated, feeling invincible, and the next, they plummet into anxiety, panic, anger, or even despair. Sometimes you believe you rule the market, only to be crushed mercilessly the next instant.

Let me tell you, you should also experience the most terrifying psychological ordeal: depositing most of your funds into your account, then watching helplessly as the market’s violent swings wipe out your capital in an instant. Before you know it, you’re left staring at a zero-balance account. Everything is gone. Nothing is more humiliating and infuriating than this!

As a trader, your first task is to maintain emotional neutrality. You must function like a machine—skilled, yet calm and objective. I recommend adding two books to your must-read list: Trading in the Zone and The Disciplined Trader by Mark Douglas.