If your problem is:

• over-trading

• taking poor odds trades

• feeling like you're going to lose when you put on a trade

Here's how to resolve it

First
Let's look at your actions and thinking as they are now

What actions do you make?
"Make trades"

And what is your belief/thought meaning of making trades
"It's what a trader does"

And what's your thinking?
"A good trader makes money by making trades

Can you see

How you define what you do
and your measure of how you do it
is the driving force behind

1. over-trading, and

2. taking poor odds trades?

leading to underperformance,
whacking your confidence
and you feel everything you do will lose?

Above are:

• beliefs that don't serve you

• thinking errors/cognitive distortions

• negative emotional consequences

Fixing it:

The following stems from my CBT work with my trading coach, a trained psychologist.

Redefine the terms of your actions and thinking

1. change action from "make trades" to "I'm working"

2. change the belief/meaning for I'm working to

   • preparing hypotheses

   • wait for market to show if & when a hypothesis is working

   • use process to identify if a +EV trade (playbook trade) is available to express the working hypothesis

   • manage the trade, including exiting as per process

   • keep a journal of the day (feelings/thoughts)

   • review all of the above at the end of the session

3. your new emotional response is:

   • you feel good about yourself when you can look over your work seeing you've done all of the above/doing your job properly

It's how professional traders evaluate how well they do their job


From personal experience
CBT is a powerful tool for change

While it takes repetition to rewire existing neural networks,
I challenge you to put pen to paper and start the awareness process above.

And see if you don't notice an immediate improvement.

Important!
Not all trading problems are psychological
Poor trading psychology often follows when:

1. you lack playbook trades

2. your trading process is incomplete

3. you can't distinguish between +EV and -EV trade opportunities

4. you lack real edge

If any of the 4 points above apply to you,
your best solution is learn from an experienced trader
Because you can't develop them from a book or video