9 Advanced Trading Psycology

Advanced Trading
Psychology
IntradayMoney.in
www.intradaymoney.in
The harsh reality is that the vast majority of all traders lose.
www.dailyniftytips.in
Sticking to any trading system for any length of time is nearly impossible
only sure shot tips..!
without having confidence in it!
Confidence does not equal discipline!
Quietly destroying your confidence
IntradayMoney.in
Not treating trading seriously
Half-Ass studying charts
Consecutive losing trades
One step forward winning trades & one step backwards losing trades.feels like your
not making progress
anxiety
happiness
fear
guilt
IntradayMoney.in
gradual
acceptance
moving
forward
This can
DENIAL Change?
What
change?
Yippee!
Finally,
Can I
its
handle
this? working!
Whats the
impact
here? How
will this
A
affect me?
A
AD
A
A
A
B
A
A only sure shot tips..! Uh-oh
A
A
AC
this is more
A
A
than I bargained
A for!
AE
What was
A
I
Athinking?
HAPPINESS
AF
ANXIETY
FEAR
A
actually work!
And its so
rewarding!
DISILLUSIONMENT
Im outta
here!
This is
SO not
for me!
A
A
G
A
I can see it
now! My
future, that is!
A
AJ
A
A
AK
A
MOVING
FORWARD
IntradayMoney.in
Who
Aam I?
GRADUAL
ACCEPTANCE
A
H
A
THREAT
GUILT
DEPRESSION
HOSTILITY
A
A
M
A
I will make
this work
even if I die
trying!
The
allow
only markets
sure shot tips..!
you to
chose between
Self
Fulfillment
Self-Fulfillment
Self
IntradayMoney.in
Destruction
Self-Destruction
and
continuously.
Trying to rationalize markets behavior without a paradigm
Lack of work ethic,
Trading without a trust worthy plan,
Low trading self-esteem
Existing personality traits conflicting with being open to interpretation

of the markets
IntradayMoney.in
Afraid of lots of trades or trading opportunities and experience
Most setups are perceived as risky especially without the necessary

understanding and skills.
All-In-At-Once methods
When should you jump
All-In-At-Once?
Does that mean use your entire maximum position size?
How do you determine how many shares/contracts to use at entry?
Can I jump All-In-At-Once in on any setup?
Scaling In methods
IntradayMoney.in
When should you scale in?
How should the incremental position sizes be determined?
Where should you scale in at?
What setups should you consider scaling in afterwards?
Scaling
In
Scaling
Out
Scaling
In
Scaling
Out
All-InAtOnce
AllOut-AtOnce
All-InAtOnce
AllOut-AtOnce
IntradayMoney.in
Multiple entries and One Exit
Multiple Entries and Multiple Exits
Scaling
In
Scaling
Out
Scaling
In
Scaling
Out
All-InAtOnce
AllOut-AtOnce
All-InAtOnce
AllOut-AtOnce
IntradayMoney.in
One Entry and One Exit
One Entry and Multiple Exits
Traders should consider being psychologically prepared to trade
Prepare to accept financial risk for something (e.g., the market) over
which you have no control
Trading is more a psychological issue than a methodological one
Without an understanding of trading psychology, the chances to

overcome the fear, confusion, and despair that is inherent in trading are
pretty much zero.
IntradayMoney.in
After a series of consecutive losses, method becomes replaced with a

feeling (e.g., psychology) that it is impossible to do anything right. This is
a perfect example of why psychology can be more critical than method.
So it goes, it is said that trading is 90% mental and 10% techniques.
This does not imply that regardless of trading tactics, a trader that has
control over their emotional issues will be a profitable trader, or vice

versa.
Trading techniques is the sole determinant of high odds through the
IntradayMoney.in
ability to understand and maximize its strengths and minimize its

weaknesses.
The root cause of the trading psychology problem

Knowingly taking a bad (non-method/non setup) trade
Having to accept this action/behavior when there is a loss.
Keep in mind that a losing trade that is base on some method is NOT a
bad trade
IntradayMoney.in
Because the risk of loss from 'some' percentage of previous trades has
been accepted.
3. Sideways Topping Action
3-Bar Bearish Reversal
3-Bar Bullish Reversal

Bull Trap
Bear Trap
Bullish Piercing
Bullish Engulfing
Opening Range Higher Low
1. Sideways Bottoming Action
IntradayMoney.in
Bearish Piercing
Bearish Engulfing
Opening Range Lower High
Minor support area
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Major support areas
Bullish
Bearish
Engulfing
Engulfing
IntradayMoney.in
50%
Bullish
50%
Piercing
Bearish
Piercing
TARGET
Price
Action
STOP
(1R)
RISK
(multiple R)
REWARD
ENTRY
ENTRY
IntradayMoney.in
REWARD
(multiple R)
RISK
(1R)
TARGET
STOP
LONG Entry
Up trend
Higher Highs & Higher Lows
Short Entry
Down trend
Lower Highs & Lower Lows
Price
Action
TARGET
STOP
(1R)
Profit from
entry
RISK
(multiple R)
1st
REWARD
ENTRY
ENTRY
Profit from 1st

entry
IntradayMoney.in
REWARD
(multiple R)
RISK
(1R)
STOP
TARGET
TARGET
Price
Action
(multiple R)
RISK
STOP
REWARD
RISK
STOP
IntradayMoney.in
REWARD
(multiple R)
TARGET
Reference: Scaling In vs. All-In-At-Once
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Transition Among Phases
3. Sideways Topping Action
IntradayMoney.in
Indicator provides
signal
Buy
SOH
Short
SOH
Typically built to assist with determining directional/trending Price Action
Up Trend with Higher Highs (HH) and Higher Lows (HL)
Down Trend with Lower Highs (LH) and Lower Lows (LL)
Oscillators typically used to gauge extended Price Action
Markets spending significant time in non-trending direction
Consolidation
Congestion
Range-Bound
IntradayMoney.in
Usually NOT designed to provide multiple entries as price action is going in your
favorScaling In
Should be obvious that most designed for a All-In-At-Once strategy
Indicators and All-In-At-Once usually lead to very high likelihood of big losses
Additional efforts required to get multiple signals for entries using indicators
There are huge perceptions about Scaling In vs. All-In-At-Once as two

diverse trading approaches
Traders believe they are better than there performance demonstrates
Traders gravitate towards instant gratification and bigger profits

Traders have little endurance and patience for learning to trade without
IntradayMoney.in
generating profits in the short-term
The focus is usually on the big reward of a trade with a big position and
not the big lose if the trade moves in the wrong direction and against
you.
Trading psychology is distorted

I cant making any money by scaling in
My setups are really good so I can always just exit and cut the lose
Most traders cannot stick to a single trading system for extended period of time
As a traderyoure going to lose your confidence at some point!
As a traderyoure going to screw up and not have any discipline
After a series of consecutive losses
IntradayMoney.in
You replace logic with feelings/emotions (e.g., psychology)
Then markets constantly test your will to succeed
As an active trader, you will get tiredits natural and human nature
As a trader you will knowingly take bad (non-method/non setup) trades
Adopt a Three-Prong-Approach
Minimize loses in each and every trade as much as possible
Maximize profits in winning trades
Manage and reduce the amount of paper profits given back from winning
trades
IntradayMoney.in
So which method addresses the objectives of creating the best

trading psychology mindset?
Simple techniques usually are the most effective in trading
Typically you dont know its trending price action until you get confirmation with
either
Higher Highs and Higher Lows, or Lower Highs and Lower Lows
More profits since price action is directional
Trending price action comes with natural retracements
IntradayMoney.in
Potential to give back some of profits with price action fluctuations
Preserving your trading capital should suggest to you to scale in to trades first
Look for confirmation that the setup is correct and price action is moving in your favor
You minimize the potential lose of trading capital with scaling in
Not a lot of profit opportunity available in non trending price action moves
Non trending price action typical comes with overlapping candlesticks
Scale In at support or resistance
Use previous trend as a reference
Only use All-In-At-Once with tight and adequate stops for minimal risk of loses
IntradayMoney.in
All-In-At-Once comes with big profitsalso comes with the unfortunate quality
of big loses
Scaling In protects you by limiting the initial risk and lose at entry
Scaling In allows you to naturally build confidence in adding to winning trades
All-In-At-Once guarantees the potential for the biggest lost at entry
Scaling In provides less profits as price action goes in your favor
All-In-At-Once guarantees maximum profit when price action moves in your favor
Not the best characteristics to use to describes your trade execution demeanor
IntradayMoney.in
Low % of winning trades (Wrong more often)

High % of winning trades (Right more often)
Better Question: Does the trade initially go in your favor?
Usually traders switch to a money

management mindset after their entry
As price action moves in the right direction,
you have to have a balanced mindset of
Initial Trade Setup

Target # 1
Scaling In more in trending price action &

money management
Hence, some traders adopt easy way out

All-In-At-Once method
Typically money
management
focus
IntradayMoney.in
Not really focusing on whether price action

is trending or non-trending
Must have balanced Plan of Attack
Scaling In
All-In-At-Once
Before you trade!

ENTRY
If you are consistently losing money in trading, then All-In-At-Once

should NOT be an option for ANY of your trading setups
If you are a breakeven trader then there should be select setups where you
scale-in and others where you can jump All-In-At-Once
If you are generating some profits and want to generate more, then be very
IntradayMoney.in
clear about only using All-In-At-Once when price action is trending!
OtherwiseScale In ALL your trades

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Advanced Trading

without having confidence in it!

Confidence does not equal discipline!

Quietly destroying your confidence

Not treating trading seriously

Half-Ass studying charts

Consecutive losing trades

Trying to rationalize markets behavior without a paradigm

Low trading self-esteem

Existing personality traits conflicting with being open to interpretation

Afraid of lots of trades or trading opportunities and experience

Most setups are perceived as risky especially without the necessary

only sure shot tips..!

Does that mean use your entire maximum position size?

How do you determine how many shares/contracts to use at entry?

Can I jump All-In-At-Once in on any setup?

When should you scale in?

How should the incremental position sizes be determined?

Where should you scale in at?

What setups should you consider scaling in afterwards?

Multiple entries and One Exit

Multiple Entries and Multiple Exits

One Entry and One Exit

One Entry and Multiple Exits

Traders should consider being psychologically prepared to trade

which you have no control

Trading is more a psychological issue than a methodological one

Without an understanding of trading psychology, the chances to

After a series of consecutive losses, method becomes replaced with a

So it goes, it is said that trading is 90% mental and 10% techniques.

control over their emotional issues will be a profitable trader, or vice

Trading techniques is the sole determinant of high odds through the

ability to understand and maximize its strengths and minimize its

The root cause of the trading psychology problem

Having to accept this action/behavior when there is a loss.

3-Bar Bearish Reversal

3-Bar Bullish Reversal

1. Sideways Bottoming Action

Opening Range Lower High

1. Sideways Bottoming Action

Minor support area

Profit from 1st

Reference: Scaling In vs. All-In-At-Once

3. Sideways Topping Action

1. Sideways Bottoming Action

Typically built to assist with determining directional/trending Price Action

Up Trend with Higher Highs (HH) and Higher Lows (HL)

Oscillators typically used to gauge extended Price Action

Markets spending significant time in non-trending direction

Should be obvious that most designed for a All-In-At-Once strategy

There are huge perceptions about Scaling In vs. All-In-At-Once as two

Traders gravitate towards instant gratification and bigger profits

generating profits in the short-term

Trading psychology is distorted

As a traderyoure going to lose your confidence at some point!

As a traderyoure going to screw up and not have any discipline

After a series of consecutive losses

You replace logic with feelings/emotions (e.g., psychology)

Then markets constantly test your will to succeed

As a trader you will knowingly take bad (non-method/non setup) trades

So which method addresses the objectives of creating the best

Simple techniques usually are the most effective in trading

only sure shot tips..!

More profits since price action is directional