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Flashcards in Trading Psychology Deck (31)
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1

To make money as a trader you have to know what the market is going to do next.
Agree Disagree

Disagree

2

Sometimes I find myself thinking that there must be a way to trade without having to take a loss.
Agree Disagree

Disagree

3

Making money as a trader is primarily a function of analysis.
Agree Disagree

Disagree

4

Losses are an unavoidable component of trading.
Agree Disagree

Agree

5

My risk is always defined before I enter a trade.
Agree Disagree

Agree

6

In my mind there is always a cost associated with finding out what the market may do next.
Agree Disagree

Agree

7

I wouldn't even bother putting on the next trade if I wasn't sure that it was going to be a winner.
Agree Disagree

Disagree

8

The more a trader learns about the markets and how they behave, the easier it will be for him to execute his trades.
Agree Disagree

Disagree

9

My methodology tells me exactly under what market conditions to either enter or exit a trade.
Agree Disagree

Agree

10

Even when I have a clear signal to reverse my position, I find it extremely difficult to do.
Agree Disagree

Disagree

11

I have sustained periods of consistent success usually followed by some fairly drastic draw-downs in my equity.
Agree Disagree

Disagree

12

When I first started trading I would describe my trading methodology as haphazard, meaning some success in between a lot of pain.
Agree Disagree

Agree

13

I often find myself feeling that the markets are against me personally.
Agree Disagree

Disagree

14

As much as I might try to "let go," I find it very difficult to put past emotional wounds behind me.
Agree Disagree

Disagree

15

I have a money management philosophy that is founded in the principle of always taking some money out of the market when the market makes it available.
Agree Disagree

Agree

16

A traders job is to identify patterns in the markets' behavior that represent an opportunity and then to determine the risk of finding out if these patterns will play themselves out as they have in the past.
Agree Disagree

Agree

17

Sometimes I just can't help feeling that I am a victim of the market.
Agree Disagree

Disagree

18

When I trade I usually try to stay focused in one time frame.
Agree Disagree

Agree

19

Trading successfully requires a degree of mental flexibility far beyond the scope of most people.
Agree Disagree

Agree

20

There are many times when I am in a profitable trade and I know the move is basically over, but I still won't take my profits.
Agree Disagree

Disagree

21

No matter how much money I make in a trade, I am rarely ever satisfied and feel that I could have made more.
Agree Disagree

Disagree

22

When I put on a trade, I feel I have a positive attitude. I anticipate all of the money I could make from the trade in a positive way.
Agree Disagree

Agree

23

The most important component in a trader's ability to accumulate money over time is having a belief in his own consistency.
Agree Disagree

Agree

24

If you were granted a wish to be able to instantaneously acquire three trading skills, what skill would you choose?

1. How to read price action.
2. How to control my emotions and stay positive.
3. How to manage risk, trade and money management.

25

I often spend sleepless nights worrying about the market.
Agree Disagree

Disagree

26

Do you ever feel compelled to make a trade because you are afraid that you might miss out?
Yes No

No

27

Although it doesn't happen very often, I really like my trades to be perfect. When I make a perfect call it feels so good that it makes up for all of the times that I don't.
Agree Disagree

Disagree

28

Do you ever find yourself planning trades you never execute, and executing trades you never planned?
Yes No

No

29

In a few sentences explain why most traders either don't make money or aren't able to keep what they make.

They never learn how to think like a professional trader.

30

The 7 reasons I am a consistent winner.

1. I objectively identify my edges.
2. I predefined the risk of every trade.
3. I completely accept risk or I am willing to let go of the trade.
4. I act on my edges without reservation or hesitation.
5. I pay myself as the market makes money available to me.
6. I continually monitor my susceptibility for making errors.
7. I understand the absolute necessity of these principles of consistent success and, therefore, I
never violate them.

31

The 5 fundamental truths of trading.

1. Anything can happen.
2. You don't need to know what is going to happen next in order to make money.
3. There is a random distribution between wins and losses for any given set of variables that define an edge.
4. An edge is nothing more than an indication of a higher probability of one thing happening over another.
5. Every moment in the market is unique.