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This Trading Psychology Expert Shares How Traders Can Improve Their Mental Edge



On any given day, if you take a stroll down FinTwit alley, you’ll see various trending topics: meme stocks or cryptos shooting 1000s of percent, rants on central bank money-printing, curated price charts with outlandish price targets, but you’ll rarely see traders discuss the mindset of trading.

The mindset of trading is one of the most important yet underappreciated elements of trading. Most traders don’t give it the attention it deserves because they automatically assume that they have the right psychological attributes to succeed in fast-paced environments like financial markets.

But while many traders will pass the chart analysis test with flying colors, they’ll often fail the emotional and mindset management test thereafter. And that’s why they lose. In fact, conventional wisdom suggests that most short-term traders lose money. They fail to produce consistent profits in the market.

Yvan Byeajee has been a trading psychology educator since 2014 and his daily trading psychology reflections on Twitter and Instagram are followed by thousands of people from all over the world. Yvan’s belief is that trading (especially short-term trading) is inherently a mental game―it’s a game one plays against oneself. And he has developed a set of mindfulness-based trading psychology solutions to help address that.

All things considered, markets are fractal and trends occur on any time frame one looks at. But people are generally ill-equipped psychologically to handle the rapidity of market feedback (volatility) on the shorter market time frames―as opposed to longer-term time frames where things are slower but more linear.

With long-term investing, market participants can sleep on their decisions and carefully ponder the pros and cons of their actions; with short-term trading, they can’t. Fast-paced market action causes people to make all sorts of sloppy financial decisions. They buy high and sell low, they hesitate to pull the trigger on lucrative opportunities, they don’t properly manage their risk, and they get overly emotional when they lose.

Mindfulness is now well anchored in popular culture and needs no introduction. In short, it’s the art of paying attention to one’s experiences without clinging to the pleasant or pushing away the unpleasant. Yvan Byeajee spent years of his life studying the discipline and its epistemology with renowned meditation masters from the East and the West before going on to teach it to traders. Yvan’s work at Trading Composure involves a unique set of mindfulness-based trading psychology solutions designed to help traders improve their performance through the development of an empowering life philosophy, protection against stress, discipline, patience, ownership, and a probabilistic mindset.

At the end of the day, financial markets aren’t rigged against retail traders, their psychology is. But once they focus on developing a winning trading psychology or mindset alongside a statistically viable trading strategy, they can become part of the small group of people who take consistent chunks of profit

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