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Treat your Trading like a Business & Trade Plan/Journaling
TRADING PSYCHOLOGY
FUNDAMENTAL ANALYSIS
Technical Analysis
Option Greeks
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Trading Psychology Part 2 Outline

Title Slide: Trade Psychology Part 2

Slide 2: Your Guide

  • Name of Presenter: Peter 
  • Expertise of Presenter: Algorithmic Trader for Pionex 

Slide 3: Roadmap of Part 2

  • Types of psychology in trading
    • Learning psychology
    • Trading psychology
    • Market psychology

Slide 4: 10K hours principle

  • It takes 10K hours to master anything
  • What is your plan to take the time to master trading?
  • Getting to the end
    • Goal
      • Do you have one that will inspire you enough to do the work?
    • Perseverance
      • Do you have the patience to accept how long it is going to take?
      • What roadblocks could discourage you from completing the journey
    • Process
      • Can you manage your capital in a way that you don’t destroy your account too early?

Slide 5: Pilgrim’s progress

  • friends/family
  • Valley of humiliation
  • Town of vanity
  • Hopeful companion
  • Doubting Castle

Slide 6: POV on the journey

  • 2020 hindsight
  • ITM – in the moment

Slide 7: Four stages to mastery

  1. Unconscious Incompetence
  2. Conscious Incompetence
  3. Conscious Competence
  4. Unconscious Competence

Slide 8: Fixed vs Growth Mindsets

Fixed: The belief that skills, intellect and talents are set and unchangeable

Growth Mindset: The belief that skills, intellect, and talents can be developed through practice and perseverance

Slide 9: How our personality affects our trading 

  • Your strengths and weaknesses follow you into trading

<examples>

  • Adrenaline junkie
    • Many trades
    • High risk
  • Slow and steady
    • Fear of committing
    • Over-analyzing
  • Fear of failure
    • SLs
      • Never using them
      • Removing them
    • Unwilling to enter trade

Slide 10: Personality models

  • benefits
    • Get perspective from an outside source
    • The world is what you make of it
      • Categories you create
  • Disclaimers
    • No model is perfect
      • Different angles 
    • Nobody can type you like yourself 
    • A hammer is both a tool and a weapon
      • No fixed mindsets allowed
  • Top models
    • Big 5
    • MBTI
    • Enneagram
  • About
    • All are subjective
    • Not possible to be “scientific”

Slide 11: Big 5

  • What
    • Most accepted among academic circles
  • 5 traits = OCEAN
    • Openness
      • Looking for new experiences, creativity
    • Conscientiousness
      • thoughtfulness, good impulse control, and goal-directed behaviors
    • Extroversion
      • Outer world vs inner world
    • Agreeableness
      • prosocial behaviors
    • Neuroticism. 
      • emotional instability

Slide 12: Myers Briggs (MBTI)

  • What
    • Algorithm for mapping 4 traits to a unique 
  • History
    • Developed by Carl Yung
    • Dialectic / Modal philosophy
    • Myers / Briggs developed the 4 letters as a system to help people in WWII find the most effective jobs they were suited for
  • How it works

Market Psychology

  • The players
    • Retail traders
      • Little individual impact
      • Able to quickly get in and out 
    • Institutions
      • Able to move the market
      • More challenging to get into a position
        • Need to lower fees / limit orders
  • The approaches
    • Market agnostic
      • Market makers
      • Hedgers
    • Market exposed
      • Traders / investors
  • Making money
    • Understanding the landscape of players and their approaches
  • Analogy of the ocean

Slide 13: Wrap up of RoadMap for Part 2

Slide 14: Part 2 Q&A



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