trading psychology, trading coach,

YOUR TRADING PSYCHOLOGY COACH

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"It is almost impossible for the beginning trader to make a reasonable assessment of the level of expertise
that is required to function in a trading environment."
Mark Douglas, The Disciplined Trader

trading psychology coachTax return data show that 90% of active traders make less than $50k/yr. As a trading psychology coach, I believe there are three key systems that all active traders need to optimize in order to get into the top 10%:

1) your Belief System (trading psychology);
2) your Trading System (trading methodology) and
3) your Nervous System (trading biology).

Psychology, methodology and biology. If one component is left out, a trader is unlikely to be able to achieve and sustain peak performance. Being a trader myself, as well as a coach and a psychotherapist, I specialize in addressing all three factors.


BELIEF SYSTEM

trading psychology trader's mindsetLike marriage, most traders go through a honeymoon period with trading, but then get disillusioned by the fact that trading is more difficult than it first appears.
If the difficulties persist, active trading will create a negative mindset, which increases anxiety and/or aggression. In this state of mind, you are either trading not to lose or revenge trading to recover losses. Neither mindset will produce peak performance or a sustainable career as a trader."Trading-not-to-lose" will get you shaken out of good trades and "trading-to-make-it back" will make you reckless.

SOLUTION: Coaching that utilizes my Total Brain ConditioningTM technology can help you quickly change your mindset back to one of positive expectancy and restore the winning attitude you once had. I work with my clients to determine their precise set of limiting beliefs and reprogram them in 21 days. You can sample that technology here.

TRADING SYSTEM
trading psychology coachI am familiar with dozens of trading methods and software systems. You can pay $2,500-$15,000 for discretionary trading software with proprietary indicators that will drive you absolutely crazy and never make you a dime. When it comes to discretionary trading systems there are four main problems: 1) the system is too simple; 2) The system has a low win/oss ratio; 3) the system is too complex; or 4) the system designer changes the system all the time.

SOLUTION: You may need a new system or you may simply need to learn how to use your current system more efficiently and effectively.  It is the frequency of success, rather than the size of the wins, that has the greatest effect on the human psyche. Whatever system you use, to sustain a winning attitude, most traders need a trading system that produces many more wins than losses. The reason: even small wins produce dopamine in the brain (the feel-good neurotransmitter) and reinforce positive expectancy, creating a virtuous reinforcing cycle.  

Simple trading system adjustments can produce immediate results. After just one coaching session, a client wrote to say, "This way is working out for me so much better…I feel more in control and have not made any mistakes…and best of all I have not chased anything." RH, in Florida.

NERVOUS SYSTEM
trading psychology - nervous systemHaving a winning attitude and the proper Trading System and trade management approach may be enough to get you on the road to success. Some traders, however, lack the trading discipline to follow a plan, even when they want to. These traders tend to be highly intelligent, creative and intuitive, but also inconsistent, disorganized and impulsive. Listen to a 1-minute Coaching Tip on Overtrading here.

SOLUTION: You can take my free Risk Profile to find out whether you are in this category. If so, you may need some specialized coaching to help you correct these tendencies. Otherwise, you will join the 90% of traders who eventually wash out. The cutting edge of peak performance coaching is located at the mind-brain-body interface. That is my area of expertise. You can read about it throughout this website and I offer a free 15-minute consultation, as well.

THE TRUE NATURE OF THE TRADING ENVIRONMENT

trading psychology coachingAspiring traders naturally focus on the potential for virtually unlimited gains. Few are prepared for the reality of the trading environment, which according to Mark Douglas is a "lonely psychological wilderness." The world of trading does not resemble normal social or business reality. Dr. Alexander Elder says it lacks "normal human helpfulness." That may be an understatement.

One client who has been very successful in the construction industry recently said to me, "I don't think I've ever realized before how ruthless the trading business is." MC, in Texas. Listen to a 1-minute Coaching Tip on the business of trading.

Successful traders know this and manage risk very carefully. They have trading tactics that get them into risk-free trades as soon as possible. The natural risks in trading are made much worse if you already have a history of losses, if you are learning to trade while under financial pressure, or if you are trying to apply success strategies from the world of business to your trading.

THE STORY OF SANDY
trading psychology coachingOne client (let's call him Sandy) was a former executive at a well-known software company. Sandy is smart, creative, confident, tech-savvy, strong-willed, ambitious and very dedicated. In the business world he is a CEO-type, a "peak performer," but that did not help his trading. Sandy took his trading account from $1 million down to $100k in the year before he called me. How did this happen?  

As his strategies and tactics failed to achieve the desired results, Sandy increased his risk-taking behavior. He increased the size of his bets. He traded more frequently. He averaged down on losing positions. He chased momentum, going for the home run, but let winners turn into losers.

His wife was worried he was 'obsessed' with trading, but he would not heed her warnings because he totally believed in himself and his abilities. In fact, Sandy always felt he was on the verge of tremendous success even as his equity curve continued to plunge.

Sandy failed to recognize that the world of business and the market environment are very different from each other. Sandy's business skills actually worked against him, because they led him to expend more effort and take more risks, when he needed to calm down, step back and trade more conservatively. The harder he tried, the worse his results. He overlooked the fact that he was being psychologically affected by trading in negative ways.

Once the downward spiral starts for a trader, it tends to take an inevitable course to washout. To understand more about your own vulnerability, read the next section.Listen to a 1-minute Coaching Tip on Keeping Losses Small. You can take my Free Risk Profile here.

RISK OF RUIN
The Risk of Ruin defines the odds of reaching a point at which you are no longer mentally, emotionally or financially able to fund (or re-fund) your account. The risk increases exponentially for those traders who:

      trading psychology coaching Hesitate to pull the trigger;
      Enter too high for longs and too low for shorts;
      Are paralyzed by over-analysis;  

      Can't stay in a winning trade;  

      Can't take a loss in stride and keep losses small;

      Overtrade and "revenge" trade;
      Compulsively trade against the trend , and/or
      Can't seem to learn from mistakes.

 

Any one of these behaviors is a warning sign that you are vulnerable to the Self-Sabotage Syndrome. In the current market climate, where volatility is 2-3 times normal levels, these high-risk behaviors may soon put an end to your trading career.

SITE OVERVIEW
I have packed this website full of free, frank, cutting-edge information about the reality of trading and how to succeed as a trader. I invite you to explore it at your own pace. If my perspective resonates with you, I hope you will email me for a FREE 15-min. CONSULTATION (doc2 at daytrading-doc.com).  

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TO MASTER THE MARKET, MASTER YOURSELF
trading psychology success coachingMost traders who are still in the game after two years have a passionate desire to learn to trade. The best traders feel compelled to master the game. I'm a competitive tennis player. Andre Agassi once said, "For me, tennis is a vehicle to discover myself and push myself." I think for many aspiring traders, the market serves the same purpose.  

We are driven to master trading because it holds the secret not only to our financial future, but to our own personal development and self-mastery, as well.

Many of my clients report that as their trading improves, the quality of their life improves along with it. If you are this type of trader, passionate about succeeding, I am equally passionate about helping you reach your goal.

BOTTOMLINE: Whatever your level of intelligence, education or success in life, learning to trade for a living is likely to be one of the hardest things you have ever done. To trade successfully, you need to do the exact opposite of what your instincts, emotions and business skills naturally urge you to do.

    Mastering the market means:

      1) Installing a mindset that will reduce your emotional reactivity to being wrong, losing and missing out.

      2) Developing a winning trading plan and psychologically sustainable trade management tactics;

      3) Optimizing your brain function so you have the discipline to trade like a pro.

MY BACKGROUND  

trading psychology coachingMy name is Kenneth Reid, MA, ABD, LPC, SEP and I am a practicing psychotherapist, trading coach and trader. I also work as Senior Analyst and Editor for three national stock market newsletters with thousands of subscribers. I've appeared on CNBC and written for Forbes.com and SmartMoney.com.  

More importantly, I have a passion for helping traders because I've experienced my own personal struggle with the same issues you may be facing. In a nutshell, I have an Ivy League education, I built a successful manufacturing business with $1300 of starting capital, sold it and retired at the age of 42. But the market took money out of my trading account for years. I had to work very hard to cure my own trading problems and in the course of that journey I learned some things that I'm sure will help you become the best trader you can be.  

      Whether you are an aspiring rookie trader, an experienced 5-year veteran who is stuck at breakeven, or a successful professional looking to sharpen your edge, I can help you reach your full trading potential in as little as six weeks. Clients who work the program invariably experience a dramatic turnaround in their relationship to trading and in their bottomline. You can read testimonials here.

      This totally customized program costs just $1499,
      less than you might lose in a single bad day.  


      Email me to schedule a FREE 15-Min. CONSULTATION (doc2 at daytrading-doc.com) or click here to sign up now.

      If you take no other action today my friend, be sure you order my neuroprogramming MP3 ACCESSING THE WINNING TRADER'S MINDSET for just $99. The key to trading success is becoming proactive about your mental-emotional state while trading.

      Take the next step. It could save you thousands!

 

 

Copyright 2009 Kenneth Reid. All Rights Reserved.