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The Psychology of Financial Trading Hypnosis can Help

The Psychology of Financial Trading

Financial trading can be the answer to financial freedom. So, why do only a very small percentage achieve success?

One of the most common emotions a trader can face is fear. Fear is a natural reaction to what is perceived as a threat. When traders receive negative news, whether it is fundamental or volatility in the markets, it can cause immediate fear, and so this can result in bad decision-making. Exiting trades early or overtrading is just a couple of examples of decisions based on fear.

There is strong evidence out there that trading is at least 95% psychology. Understanding the role of your psychology is essential if you are to succeed as a trader. It is therefore vital that you work on your psychology.

‘We cannot control the markets, but we can control our behaviour’

Common issues for traders;

  • Fear of losing a trade

  • Timing and exiting trades

  • Too much pressure

  • Negative patterns

  • Bad decision making

  • Anxiety and stress

  • Irrational trading

  • Impatience

  • Limiting beliefs

  • Fear of losing money

  • Fear of missing out

  • Lack of security

  • Greed

Hypnosis for Traders

Hypnosis (Hypnotherapy) can be extremely effective in helping financial traders and investors reach their full potential. As well as creating new beliefs, hypnosis also works on eliminating detrimental beliefs, fears and negative behaviours. Some of us don’t even realise we have these until it holds us back in different ways.

There are many skills which one needs for successful trading. Trading psychology is an essential skill that a trader should have.

It is the ability to control emotions, remain in control, and to think strategically whilst applying their skillset.

Traders often need to make quick decisions, and for the accomplishment, it requires alertness and complete focus of the mind. Discipline is also essential in order to stick to the trading plan.

Understanding Trading Psychology

Trading psychology can be associated with a few specific emotions and behaviours that are often catalysts for market trading. Conventional characterizations of emotionally-driven behaviour in markets ascribe most emotional trading to either greed or fear.

Greed can be thought of as an excessive desire for wealth, so excessive that it clouds rationality and judgement at times. Thus this characterization of greed-inspired investor or trading assumes that this emotion often leads traders towards a variety of behaviors. This may include making high-risk trades, buying shares of an untested company or technology just because it is going up in price rapidly, or buying shares without researching the underlying investment.

Additionally, greed may inspire investors to stay in profitable trades longer than is advisable in an effort to squeeze out extra profits from it, or to take on large speculative positions. Greed is most apparent in the final phase of bull markets, when speculation runs rampant and investors throw caution to the wind.

Conversely, fear causes traders to close out positions prematurely or to refrain from taking on risk because of concern about large losses. Fear is palpable during bear markets, and it is a potent emotion that can cause traders and investors to act irrationally in their haste to exit the market. Fear often morphs into panic, which generally causes significant selloffs in the market from panic selling.

Regret may cause a trader to get into a trade after initially missing out on it because the stock moved too fast. This is a violation of trading discipline and often results in direct losses from security prices that are falling from peak highs.

Technical Analysis

Trading psychology is often important for technical analysts relying on charting techniques to drive their trade decisions. Security charting can provide a broad array of insights on a security’s movement. While technical analysis and charting techniques can be helpful in spotting trends for buying and selling opportunities, it requires an understanding and intuition for market movements which is derived from an investor’s trading psychology.

Hypnotherapy for Traders

Hypnosis generally works faster than other therapies. This is because hypnosis works directly with the unconscious part of our minds. Our unconscious mind is where we hold our beliefs, fears, behaviours, habits and more. And so, as a hypnotherapist it is, for me about guiding the client into a very relaxed state. This is where the works begins, by using the power of positive suggestion. Sometimes the changes can be immediate, this depends on the person and how deep rooted the issue is.

More and more traders are seeking help for their psychology around trading. By doing so, the success rates are very high and can be life changing for a trader.

Hypnosis can help with the following;

  • Creating self-discipline

  • Building self-control

  • Changing beliefs

  • Making good decisions

  • Become more in control of your thoughts

  • Take control over your emotional state

  • Eliminate fears or limiting beliefs

  • Create new positive beliefs

  • Build confidence

  • Become more focused

  • Increase self-motivation

  • Positive mindset

  • Create self-awareness

  • Feel more relaxed

  • Staying consistent

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