A Trader's Cognitive Theory & Frustration

insight psychology Jul 02, 2016

Cognitive theory implies that we do no react to events but react to the thinking of those events. For example, when a trader is overcome with frustration, it is not their losses, but their thinking of those losses that generate knee jerk reactions and result in self-criticism and overtrading.

It is a common human reaction to to feel that losing is a sign of weakness; that losing makes you a loser. Therefore, as a trader this may typically lead to us holding onto losing positions, changing our trading strategy and rules or overtrading to make our money back. Ironically, it is these reactions that increase the trader's likelihood of financial losses.

A cognitive approach to overcoming this is to find ways of thinking that make losses non-threatening. One way to do this is to embrace losses and learn from them. By analysing our losses we can turn them into an opportunity to learn. This learning, growing and development approach helps with our self-improvement.

All of our students are taught a daily and weekly programme of transforming yesterday's/last week's losses into trading goals for today. This has massively helped with their discipline as well as self-improvement as they are able to quantify the difference the goal setting makes and actually see the difference in their results.

These kind of techniques are not used by most trading education companies out there today. However, they are used by professional traders and hedge fund level traders. If you are playing in the same game as them don't you think you should be too? Check out our live courses and subscription services so you can stay ahead of the game and secure your place amongts the financial elite. 

You can start your journey by joining our Golden Playbook network where you will recieve exclusive research and trade alerts live from the Trader Prophets trading floor. This is your chance to join a true global community of traders and investors learning, growing and profiting with forex, stocks and commodity trading strategies. 

Check out the Golden Playbook and all of this month's bonuses here: https://www.traderprophets.com/store/goldenplaybook

 


 

 

Natascha Sing is an investor, lawyer, entrepreneur and wealth strategist. Considered an authority on achieving peak performance through the financial markets and mastering wealth psychology, she has worked with some of the biggest institutions, financial investment houses and individual traders and investors around the world.

Through the birth of Trader Prophets, Natascha has bought together a world renowned team of traders, investors, peak performance psychologists and wealth masters to empower, educate and inspire over 15,000 people over 6 continents through her audio, video and live training programs.

With a team of over fifty years collective experience in the world's financial markets, Trader Prophets is a global leader in trader education equipping anyone, from any background with the right tools, strategy and plan to achieve success from the markets.

Whether trading Forex, Stocks or Commodities the live online trainings, workshops, coaching and personalised support has been a game changer in taking beginners with zero or little knowledge of the financial markets into confident, successful Master Traders.

 

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