{"id":101560,"date":"2022-03-30T13:35:58","date_gmt":"2022-03-30T19:35:58","guid":{"rendered":"https:\/\/mavericktrading.com\/traders\/?page_id=101560"},"modified":"2025-05-08T08:09:54","modified_gmt":"2025-05-08T14:09:54","slug":"psychology-corner","status":"publish","type":"page","link":"https:\/\/options.mavericktrading.com\/traders\/psychology-corner\/","title":{"rendered":"Psychology Corner"},"content":{"rendered":"
[vc_row][vc_column][vc_raw_js]JTNDc2NyaXB0JTNFJTBBdmFyJTIwJTI0aiUyMCUzRCUyMGpRdWVyeS5ub0NvbmZsaWN0JTI4JTI5JTNCJTBBJTI0aiUyOGRvY3VtZW50JTI5LnJlYWR5JTI4ZnVuY3Rpb24lMjglMjklMjAlN0IlMEElMjRqJTI4JTI3LndwY3dfZmVfY291cnNlX3Byb2dyZXNzX2NvdXJzZSUyMGElMjclMjkuY2xvc2VzdCUyOCUyNy53cGN3X2ZlX3N1bW1hcnlfY291cnNlX3Byb2dyZXNzJTI3JTI5LmZpbmQlMjglMjclMjN3cGN3X2ZlX2NvdXJzZV9wcm9ncmVzc19kZXRhaWxfMjQlMjclMjkuZmFkZUluJTI4JTI3ZmFzdCUyNyUyOSUzQiUwQSU3RCUyOSUzQiUwQSUzQyUyRnNjcmlwdCUzRQ==[\/vc_raw_js][\/vc_column][\/vc_row][vc_row css=”.vc_custom_1614612758312{margin-top: 24px !important;margin-bottom: 24px !important;}”][vc_column][vc_single_image image=”117517″ img_size=”full” alignment=”center” css=””][vc_column_text css=”.vc_custom_1648668890831{padding-top: 20px !important;padding-bottom: 20px !important;}”]\n

Welcome to the Maverick Psychology Corner<\/h1>\n[\/vc_column_text][vc_column_text]While no one at the firm is a trained psychologist, nor have any of us ever played one on TV, we know from experience, personal and corporate, that psychology plays an important role in trading.\u00a0 This not only includes how a particular trader\u2019s personality will influence how he or she approaches the markets, but how external events, and the trader\u2019s reaction to them, affect that trader\u2019s actions regarding trades, risk management, and portfolio management.<\/p>\n

As traders, when money is on the table in a trade, we like to think that we will always be disciplined machines, following our trading plans to the letter, and that nothing can get in the way of a well-executed plan. \u00a0In reality, as human beings, we have to recognize that we are often at the mercy of the chemicals are own brains produce, especially early in a trader\u2019s career.<\/p>\n

This section is designed to shed some light on how internal and external events and our reactions to them, collectively psychology, affect traders.\u00a0 It\u2019s important that you not try to fight your reactions, but recognize them, understand them, and put procedures in place so that these reactions don\u2019t negatively affect your trading.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column width=”2\/3″][vc_tta_tour][vc_tta_section title=”1. The Trader” tab_id=”1648668915658-266bfa15-7d56″][vc_row_inner][vc_column_inner][vc_column_text]\n

The Trader<\/h1>\n[\/vc_column_text][vc_column_text css=”.vc_custom_1648669063145{padding-top: 20px !important;padding-bottom: 20px !important;}”]You can set up the most methodical plan, set triggers, and have step by step algorithms in place for order entry, trade management, and trade exit, but in the end, you, the trader, are the most volatile variable in the entire equation.\u00a0 Understanding this is one of the keys to mastering the effects psychology has on trading.<\/p>\n

To be a professional trader, you have to understand your personality type.\u00a0 You must understand the strengths of your personality.\u00a0 This is easy for most people, as recognizing our strengths feeds our egos and makes us feel good about ourselves.\u00a0 The hard part is understanding the weaknesses of your personality.\u00a0 Most people don\u2019t like to do this because it is uncomfortable and makes us evaluate past actions that may not have had positive outcomes.\u00a0 Finally, you must understand that both your strengths and weaknesses will inform the tendencies of your reactions in multiple scenarios.\u00a0 Only by recognizing all three of these factors, studying them, and by putting procedures in place to capitalize on or minimize the impact of your reactions and tendencies will you be able to master your personality as it pertains to trading.[\/vc_column_text][vc_column_text css=”.vc_custom_1648669077570{padding-top: 20px !important;padding-bottom: 20px !important;}”]\n

Included Sessions<\/strong><\/h2>\n
    \n
  • \n

    Programming<\/h3>\n<\/li>\n
  • \n

    Brain Chemistry<\/h3>\n<\/li>\n
  • \n

    Habits<\/h3>\n<\/li>\n
  • \n

    Behavior Change<\/h3>\n<\/li>\n
  • \n

    Overtrading<\/h3>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_btn title=”Go to Videos” link=”url:https%3A%2F%2Fmavericktrading.com%2Ftraders%2Fmodule-1%2Fhabits-and-behavior-change%2F|title:Habits%20%26%20Behavior%20Change”][\/vc_column_inner][\/vc_row_inner][\/vc_tta_section][vc_tta_section title=”2. Before the Trade” tab_id=”1648668915664-b0aa3f9a-92de”][vc_row_inner][vc_column_inner][vc_column_text css=”.vc_custom_1648669613859{padding-top: 20px !important;padding-bottom: 20px !important;}”]\n

    Before the Trade<\/h1>\n[\/vc_column_text][vc_column_text css=”.vc_custom_1648669634863{padding-top: 20px !important;padding-bottom: 20px !important;}”]As humans, we are generally pretty good at leveraging the gray matter in our pre-frontal cortices when there is nothing at risk (i.e. money on the line).\u00a0 This means that prior to the trade, when evaluating setups, we are generally fairly clear-headed.\u00a0 This theory is accurate when examining a single trade in isolation.<\/p>\n

    But, what happens when you have the baggage of previous trades bolstering or weighing on your mind?\u00a0 Is the trader who just experienced four consecutive losses in well-planned trades really trading with the same mental clarity as if those losing trades had never happened?\u00a0 Is the trader who just enjoyed four consecutive winning trades in danger of abandoning tested risk management techniques and over-leveraging a portfolio due to a misplaced sense of infallibility?\u00a0 These scenarios, and countless others affect traders prior to the trade even being executed and must be studied and understood for success in the long run.[\/vc_column_text][vc_column_text]\n

    Included Sessions<\/strong><\/h2>\n
      \n
    • \n

      Confirmation Bias<\/h3>\n<\/li>\n
    • \n

      Familiarity Bias<\/h3>\n<\/li>\n
    • \n

      Recency Bias<\/h3>\n<\/li>\n
    • \n

      Anchoring<\/h3>\n<\/li>\n
    • \n

      Herd Behavior<\/h3>\n<\/li>\n
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      News Cycles<\/h3>\n<\/li>\n
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      Hesitation<\/h3>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_btn title=”Go to Videos” css=”.vc_custom_1648670530559{padding-top: 20px !important;}” link=”url:https%3A%2F%2Fmavericktrading.com%2Ftraders%2Fmodule-2%2Fperception-biases-anchoring%2F|title:Perception%2C%20Biases%20%26%20Anchoring”][\/vc_column_inner][\/vc_row_inner][\/vc_tta_section][vc_tta_section title=”3. During the Trade” tab_id=”1648669753812-eebdc45d-e95b”][vc_row_inner][vc_column_inner][vc_column_text css=”.vc_custom_1648669793366{padding-top: 20px !important;padding-bottom: 20px !important;}”]\n

      During the Trade<\/h1>\n[\/vc_column_text][vc_column_text css=”.vc_custom_1648669812918{padding-top: 20px !important;padding-bottom: 20px !important;}”]We\u2019ve all heard the mantra: \u201cPlan the Trade, Trade the Plan.\u201d\u00a0 In theory, this is easy to do.\u00a0 In practice, it can be incredibly stressful and difficult.\u00a0 Internalities and externalities can and will affect your mindset during a trade, especially if you have very few positions, or have come off an extended winning or losing streak.<\/p>\n

      Concern over a single particular trade can quickly lead to an unhealthy, albeit short-term obsession with the trade.\u00a0 When this happens, it is much more likely for the trader to \u201cpoke\u201d a trade that should have been left alone, double-down on a losing position, or prematurely exit a winning trade out of fear.\u00a0 Ego, fear, and greed all have the potential to impact a trader\u2019s mindset during a trade.[\/vc_column_text][vc_column_text css=”.vc_custom_1648669838338{padding-top: 20px !important;padding-bottom: 20px !important;}”]\n

      Included Sessions<\/strong><\/h2>\n
        \n
      • \n

        Fear<\/h3>\n<\/li>\n
      • \n

        Greed<\/h3>\n<\/li>\n
      • \n

        Adrenaline<\/h3>\n<\/li>\n
      • \n

        Screen Watching<\/h3>\n<\/li>\n
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        Misuse of Stops<\/h3>\n<\/li>\n
      • \n

        Cutting Winners<\/h3>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_btn title=”Go to Videos” link=”url:https%3A%2F%2Fmavericktrading.com%2Ftraders%2Fmodule-3%2Ffear-greed-impulse%2F|title:Fear%2C%20Greed%20%26%20Impulse”][\/vc_column_inner][\/vc_row_inner][\/vc_tta_section][vc_tta_section title=”4. After the Trade” tab_id=”1648669970648-616671f1-0779″][vc_row_inner][vc_column_inner][vc_column_text css=”.vc_custom_1648670013855{padding-top: 20px !important;padding-bottom: 20px !important;}”]\n

        After the Trade<\/h1>\n[\/vc_column_text][vc_column_text css=”.vc_custom_1648670037865{padding-top: 20px !important;padding-bottom: 20px !important;}”]Trading is a game of probabilities.\u00a0 We work to put as many probabilities on our side of the equation as possible in order to have a profitable trade.\u00a0 Eventually though, all probability waves collapse into an observed reality.<\/p>\n

        Whether that observed reality is win, lose, or break-even, our reactions to a trade or series of trades have the potential to inform our actions in future trades, for good and ill.\u00a0 Understanding your personal reactions to each of these scenarios is another key to understanding your personality and using that knowledge for success in trading.[\/vc_column_text][vc_column_text css=”.vc_custom_1648670053210{padding-top: 20px !important;padding-bottom: 20px !important;}”]\n

        Included Sessions<\/strong><\/h2>\n
          \n
        • \n

          Envy<\/h3>\n<\/li>\n
        • \n

          Regret<\/h3>\n<\/li>\n
        • \n

          Revenge Trading<\/h3>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_btn title=”Go to Videos” link=”url:https%3A%2F%2Fmavericktrading.com%2Ftraders%2Fmodule-4%2Fhow-past-trades-affect-your-next-trades%2F|title:How%20Past%20Trades%20Affect%20Your%20Next%20Trades”][\/vc_column_inner][\/vc_row_inner][\/vc_tta_section][vc_tta_section title=”5. Losing” tab_id=”1648670075509-899b5852-60f2″][vc_row_inner][vc_column_inner][vc_column_text css=”.vc_custom_1648670181246{padding-top: 20px !important;padding-bottom: 20px !important;}”]\n

          Losing<\/h1>\n[\/vc_column_text][vc_column_text css=”.vc_custom_1648670160113{padding-top: 20px !important;padding-bottom: 20px !important;}”]Nobody likes to lose in trading, or in life.\u00a0 First, it negatively impacts us financially.\u00a0 Second, and often more detrimental long-term, is that it negatively impacts our egos and self-images.<\/p>\n

          A prolonged losing streak, or even a single (often over-leveraged) trade can have such an outsized negative impact that a trader may abandon a perfectly functional trading system and begin to trade with no plan or risk management out of desperation for a win or despondency over losses.\u00a0 Not placing yourself in that type of situation is the best preventative, but these situations happen to every trader at some point.\u00a0 Understanding your personal reaction cycle to losses is a key to avoiding desperate but self-destructive behavior.[\/vc_column_text][vc_column_text css=”.vc_custom_1648670174241{padding-top: 20px !important;padding-bottom: 20px !important;}”]\n

          Included Sessions<\/strong><\/h2>\n
            \n
          • \n

            Dealing with Slumps<\/h3>\n<\/li>\n
          • \n

            Physical Changes in the Brain After Loss<\/h3>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_btn title=”Go to Videos” link=”url:https%3A%2F%2Fmavericktrading.com%2Ftraders%2Fmodule-5%2Flosing-part-of-the-business%2F|title:Losing%20%E2%80%93%20Part%20of%20the%20Business”][\/vc_column_inner][\/vc_row_inner][\/vc_tta_section][vc_tta_section title=”6. Winning” tab_id=”1648670203905-3fc515e5-e99e”][vc_row_inner][vc_column_inner][vc_column_text css=”.vc_custom_1648670236720{padding-top: 20px !important;padding-bottom: 20px !important;}”]\n

            Winning<\/h1>\n[\/vc_column_text][vc_column_text css=”.vc_custom_1648670256305{padding-top: 20px !important;padding-bottom: 20px !important;}”]Everyone likes winning.\u00a0 Our chemically dependent brains get a measurable shot of adrenaline and dopamine when we exit a winning trade.\u00a0 We feel good.\u00a0 We feel smart.\u00a0 We feel invincible.\u00a0 Our ego is fed.\u00a0 We feel we have mastered this beast called The Market and we can and shall bend it to our Will.<\/p>\n

            Perversely, in trading, even winning is a two edged sword.\u00a0 The chemicals our brain produces and the euphoria we experience in winning trades can drive us to do things that would have been unthinkable just a short time ago.\u00a0 We skirt the danger of abandoning risk management principles that brought us success because we feel we are unstoppable and can\u2019t lose in our next trades.\u00a0 Along these same lines, we also run the risk of trading indiscriminately (because we can\u2019t lose) or overtrading because we want to feel the joy of success more often.\u00a0 Understanding these dangers allows us as traders to learn to bask in the joy of the win, but also come back down to reality and regain the humility required for longevity and success as professional traders.[\/vc_column_text][vc_column_text css=”.vc_custom_1648670271237{padding-top: 20px !important;padding-bottom: 20px !important;}”]\n

            Included Sessions<\/strong><\/h2>\n
              \n
            • \n

              Chasing Perfection – The Holy Grail<\/h3>\n<\/li>\n
            • \n

              Physical Changes in the Brain After Winning<\/h3>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_btn title=”Go to Videos” link=”url:https%3A%2F%2Fmavericktrading.com%2Ftraders%2Fmodule-6%2Fwinning-and-the-problems-that-come-with-it%2F|title:Winning%E2%80%A6and%20the%20problems%20that%20come%20with%20it”][\/vc_column_inner][\/vc_row_inner][\/vc_tta_section][vc_tta_section title=”7. Miscellaneous” tab_id=”1648670320139-1a489ddd-ef84″][vc_row_inner][vc_column_inner][vc_column_text css=”.vc_custom_1648670385316{padding-top: 20px !important;padding-bottom: 20px !important;}”]\n

              Miscellaneous<\/h1>\n[\/vc_column_text][vc_column_text css=”.vc_custom_1648670402915{padding-top: 20px !important;padding-bottom: 20px !important;}”]In this section, we\u2019ve addressed with a very broad brush the major facets of psychology in trading.\u00a0 That said, in trading, as in life, there are a multitude of scenarios that don\u2019t necessarily fit neatly into one of our previous sections.\u00a0 In this section, we will address those hard to quantify and categorize scenarios that all traders will experience at some point in their trading careers.[\/vc_column_text][vc_column_text css=”.vc_custom_1648670425819{padding-top: 20px !important;padding-bottom: 20px !important;}”]\n

              Included Sessions<\/strong><\/h2>\n
                \n
              • \n

                TBD<\/h3>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_btn title=”Go to Videos” link=”url:https%3A%2F%2Fmavericktrading.com%2Ftraders%2Fmodule-7%2Fmiscellaneous-trading-psychology%2F|title:Miscellaneous%20Trading%20Psychology”][\/vc_column_inner][\/vc_row_inner][\/vc_tta_section][\/vc_tta_tour][\/vc_column][vc_column width=”1\/3″][vc_column_text]
                You need to be logged in to see your course progress.<\/div><\/div>[\/vc_column_text][\/vc_column][\/vc_row]\n<\/div>","protected":false},"excerpt":{"rendered":"

                [vc_row][vc_column][vc_raw_js]JTNDc2NyaXB0JTNFJTBBdmFyJTIwJTI0aiUyMCUzRCUyMGpRdWVyeS5ub0NvbmZsaWN0JTI4JTI5JTNCJTBBJTI0aiUyOGRvY3VtZW50JTI5LnJlYWR5JTI4ZnVuY3Rpb24lMjglMjklMjAlN0IlMEElMjRqJTI4JTI3LndwY3dfZmVfY291cnNlX3Byb2dyZXNzX2NvdXJzZSUyMGElMjclMjkuY2xvc2VzdCUyOCUyNy53cGN3X2ZlX3N1bW1hcnlfY291cnNlX3Byb2dyZXNzJTI3JTI5LmZpbmQlMjglMjclMjN3cGN3X2ZlX2NvdXJzZV9wcm9ncmVzc19kZXRhaWxfMjQlMjclMjkuZmFkZUluJTI4JTI3ZmFzdCUyNyUyOSUzQiUwQSU3RCUyOSUzQiUwQSUzQyUyRnNjcmlwdCUzRQ==[\/vc_raw_js][\/vc_column][\/vc_row][vc_row css=”.vc_custom_1614612758312{margin-top: 24px !important;margin-bottom: 24px !important;}”][vc_column][vc_single_image image=”117517″ img_size=”full” alignment=”center” css=””][vc_column_text css=”.vc_custom_1648668890831{padding-top: 20px !important;padding-bottom: 20px !important;}”] Welcome to the Maverick Psychology Corner [\/vc_column_text][vc_column_text]While no one at the firm is a trained psychologist, nor have any of us ever played one on TV, we know from experience, personal and corporate, that psychology plays an important role in…<\/p>\n","protected":false},"author":10,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"footnotes":""},"class_list":["post-101560","page","type-page","status-publish","hentry","description-off"],"_links":{"self":[{"href":"https:\/\/options.mavericktrading.com\/traders\/wp-json\/wp\/v2\/pages\/101560"}],"collection":[{"href":"https:\/\/options.mavericktrading.com\/traders\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/options.mavericktrading.com\/traders\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/options.mavericktrading.com\/traders\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/options.mavericktrading.com\/traders\/wp-json\/wp\/v2\/comments?post=101560"}],"version-history":[{"count":4,"href":"https:\/\/options.mavericktrading.com\/traders\/wp-json\/wp\/v2\/pages\/101560\/revisions"}],"predecessor-version":[{"id":117514,"href":"https:\/\/options.mavericktrading.com\/traders\/wp-json\/wp\/v2\/pages\/101560\/revisions\/117514"}],"wp:attachment":[{"href":"https:\/\/options.mavericktrading.com\/traders\/wp-json\/wp\/v2\/media?parent=101560"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}