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 coachWelcome, trader. Dr. Kenneth Reid, here. I have a Ph.D. in clinical psychology and I am a trading coach and active trader. I have been daytrading and swing trading stocks and futures for 16 years. Since 2002 I have coached daytraders, swing traders, stock traders, forex traders & futures traders on trading psychology, as well as trading methods and system design.

Whether you are an aspiring trader, an experienced trader stuck at breakeven, or a successful professional trader who wants to sharpen your edge, my customized coaching program can help you to reach your goal.

First and foremost, however, you have to avoid the "Turtle Trap."

THE TURTLE STORY
In 1983, after visiting a turtle farm in Asia, legendary commodity trader Richard Dennis decided to prove that great trading could be taught. Dennis revealed his secret system to 23 hand-picked, high-IQ individuals and funded large accounts for them to trade. Despite having a proven method and a bona fide Market Wizard for a mentor, only a few Turtles were able to follow the very simple rules! Why do smart people fail to do what they know they should do?

THE TRADING ENVIRONMENT
As Mark Douglas points out in the quote at the top of the page, these hand-picked geniuses failed because they were not prepared for the psychological challenges of a trading environment and Richard Dennis 'forgot' to prepare them.

After two weeks of training, the Turtles, many of whom had never traded before, were given large accounts and they were under intense pressure to perform or be cut from the team. Some traders feel performance pressure even in SIM.

When stress overloads the nervous system  and we have money at risk, deep-seated 'security issues' arise. We are overtaken by an incoherent state of mind that degrades our decision making process. We are then much more likely to fall back on primitive midbrain-based solutions (fight, flee or freeze) in response to the challenge we face.

emotional regulation for traders

Richard Dennis was a great trader, but he had a very naive view of the importance of trading psychology. He was 100% focused on Method and 0% focused on Mindset. He never helped his baby Turtles deal with the stress and other psychological challenges of trading. So, despite the brilliant mentoring, most Turtles failed.

TRADING IN THE ZONE
This is the title of one of Mark Douglas' excellent books on the psychology of trading. The "Zone" is nothing esoteric. It is simply the state of mind in which you can think clearly and execute your system during live trading. In order to stay in the Zone a trader must manage, maintain and master three things.

1. MANAGE STRESS
trading psychology - Maintain balance Moderate levels of stress provide the adrenaline, the thrill that makes trading less of a job and more of an adventure. If you exceed your stress threshold, however, you will get into an overload state that triggers primal emotions and defensive/aggressive behaviors.  

In this stressed-out state of mind, you will become re-active rather than pro-active. Your prefrontal brain function will be degraded so your ability to follow your trading plan will be impaired. You will miss the obvious and lose impulse control. Ironically, your fear of losing or missing out will actually work against you and cause losses. This leads to a downward performance spiral into trading hell. You will seek revenge for losses or run for cover. Moreover, professional traders take advantage of the emotional vulnerability of the average trader. Read more about toxic stress here and here and how you can avoid it here.

2. MAINTAIN A CONFIDENT MINDSET
trading psychology - confidence Aspiring traders pay far too much attention to what just happened in the market (the recency bias) and not enough attention to their own mental state. Successful traders actively manage their mental attitude in order to maintain confidence in the face of uncertainty; discipline in the midst of randomness. Maintaining a confident mental attitude is a skill that can be learned. Top athletes practice it. Top traders practice it. You can, too.

Even successful traders, however, are at risk of psychological wounding from a string of losses or a single large loss. In this state, a trader will become risk averse and trade-not-to-lose. That is a recipe for breakeven trading, or worse. (Listen to a free 1 Minute Tip on rebuilding confidence.)

The good news is that there is a technology that can help clear thenegative emotional residue from past losses for just $99.  Click here to find out more.  
 

3. MASTER YOUR TRADING 'EDGE'
trading psychology - define your trading edge Your trading 'edge' is the method (plan) that gives you an advantage in your trading beyond the odds of chance. Professionals trade a defined plan, amateurs trade intuitively, instinctively and impulsively.

Professional traders exploit the obvious momentum and pattern signals that get amateurs convinced that they know what will happen next. Once amateurs commit, the market suddenly reverses.  

If you do not carefully design and master your trading edge, your trading account will serve as a source of funds for professionals. As an active trader myself, I know what is needed to maintain an advantage in our sophisticated, fast-moving markets and I specialize in helping traders sharpen their technical edge.


To review my Coaching Program, click here.


HIGH RISK TRADERS

trading psychology coachingSome traders lack the discipline to follow a trading plan, even when they want to. These traders tend to be intelligent, creative and intuitive, but also inconsistent, disorganized and impulsive. They are High Risk Traders. Here is the true story of one High Risk Trader I worked with. Let's call him Art.

Art is a former executive at a well-known software company. He is smart, creative, confident, strong-willed, ambitious and very dedicated. Nevertheless, despite his CEO-like personality, Art took his trading account from $1 million down to $100k in the year before he called me. How did this happen?  

Clinical studies have proven the common notion that men in general have difficulty asking for directions. Art was like that. As his strategies and tactics failed to achieve the desired results, Art never sought help. He remained focused on the market, not on himself or his system. To recoup losses, he traded more frequently and averaged down on losing positions.

His wife was worried about his trading, but Art always felt he was on the verge of greatness, even as his equity curve continued to plunge. His self-confidence (masking his huge need to be right) actually worked against him. I could not help Art. Not every trader can avoid the problematic consequences of High Risk trading, namely the Risk of Ruin.

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 
      Enter too high for longs and too low for shorts;
      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.


These behaviors are warning sign that you are vulnerable. You can find out more by taking my Free Risk Profile here.

The Risk Profile will help you determine whether you have some of the psychological risk factors that can lead down this path. It is free of charge.

TO MASTER THE MARKET, MASTER YOURSELF
trading psychology success coachingWhatever your level of intelligence, education or success in life, learning to trade for a living is likely to be one of the harder things you have ever done. Your business skills may or may not help you. You are likely to encounter certain things about yourself that you were not prepared to face before.

I'm a competitive tennis player. In his autobiography, Andre Agassi wrote, "For me, tennis is a vehicle to discover myself and push myself." For many traders, trading serves the same purpose. It did for me. You may be driven to master trading because it holds the secret not only to your financial future, but to your own self-mastery.

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 aspiring trader, passionate about succeeding, I believe I can help you achieve your goals. You can read testimonials here. Click here to be notified of my next FREE Webinar.

trading psychology coachWhether you are an aspiring rookie, an experienced veteran who is stuck at breakeven, or a successful professional looking to sharpen your edge, I can help you reach your full trading potential. To review my Coaching Program, click here.

Email me to schedule a FREE 15-Min. CONSULTATION. Email:  doc2@daytrading-doc.com

My customized 6-week program costs just $1499.  Click here to sign up now.  


Dr. Reid's Intensive 90-min. Coaching Session

Don't want to commit to 6-weeks? Need just a little help now?

I offer a 90-minute intensive coaching session for $250.
The program will focus on correcting just one key issue that is holding you back. Sessions can usually be scheduled within 48 hours. Click the button to sign up:

Dr. Reid's Winning Trader's Mindset MP3
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 to mastery today. Kenneth Reid, Ph.D 

 

Copyright 2012 Kenneth Reid. All Rights Reserved.