How Memory Affects Your Trading

John LockeGeneral Comments, John Locke, Trading Lesson, Trading Psychology, Trading Theory1 Comment

The emotions we feel and the actions we take are largely dependent on how we remember things.  This is because we use our memories to learn.  We might think something like “I remember the last time this happened. I did that and got a favorable result, therefore I will do that again.” The challenge however, is that our memories aren’t … Read More

Harness the Power of Your Emotions

John LockeGeneral Comments, John Locke, Trading Lesson, Trading Psychology, Trading TheoryLeave a Comment

As humans we make decisions based on emotions. Of course we sometimes use logic change our decisions but our initial decision, and the one we are most likely to act upon, is always based on emotion. This is because our emotions are much more powerful and react much more quickly than our logic. Therefore, our emotions quickly send us down … Read More

Properly Setting Your Trading Goals to Lower Stress

John LockeGeneral Comments, John Locke, Trading Lesson, Trading Psychology, Trading Theory1 Comment

As traders we often set some sort of performance “goals”. We might say something like “My goal is to make $5000 per month trading”. There are problems with that goal, the biggest problem being that we don’t actually have control over how much money we make in any given trade. We might have a lot of influence on how much … Read More