Thursday, April 20, 2006

A Trading Psychology Checklist

Note: The Web seminar for Woodie's CCI Club will be at 4 PM Central Time and is free for all participants. The link to the online room is on the CCI Club home page.


How do you know if your trading psychology problem is really just about trading or is a sign of larger problems? Here is a quick checklist:

A) Does your problem occur outside of trading? For instance, do you have temper and self-control problems at home or in other areas of life, such as gambling or excessive spending?

B) Has your problem predated your trading? Did you have similar emotional symptoms when you were young or before you began your trading career?

C) Does your problem spill over to other areas of your life? Does it affect your feelings about yourself, your overall motivation and happiness in life, and your effectiveness in your work and social lives?

D) Does your problem affect other people? Do you feel as though others with whom you work or live are impacted adversely by your problem? Have others asked you to get help?

E) Do you have a family history of emotional problems and/or substance use problems? Have others, particularly in your immediate family, had treated or untreated emotional problems?

If you answered "yes" to two or more of the above items, consider that you may not be alone. More than 10% of the population qualifies with a diagnosable problem of anxiety, depression, or substance abuse. Tweaking your trading will be of little help if the problem has a medical or psychological root. A professional consultation if you answered "yes" to two or more checklist items might be your best money management strategy.

6 comments:

Aditya Kumar SIngh said...

Hello sir,

I really love your blog... its nice. keep posting. And please see my stock market blog "Successful Investing" also.

http://indiamf.blogspot.com

regards
Aditya

Brett Steenbarger, Ph.D. said...

Thanks for your support. I will definitely check out your blog. I continue to be amazed at the variety and quality of market blogs.

Brett

Paulo de León said...

Brett i will thank you not only for the excelent seminar that i enjoy in Woodys Club. Pearls of Wisdom. Thank you for sharing them.
Also because you have been a fundamental piece in my recent education as a trader. I mature a lot in the last months and even start blogging in a site in Spain trying to give them some insights about the US markets.
God bless you.

Brett Steenbarger, Ph.D. said...

Thank you, Paulo. You are very kind. Good luck with your blog; do let me know the URL and I will pass it along.

Brett

Paulo de León said...

tx again
the name in spanih is "Entropía en los mercados" traslated Market´s Entropy and the url is
http://entropiaenlosmercados.blogspot.com/

or

http://especulacion.org/bolsa/index.php?blog=10

this one on theweb site www.especulacion.org from Madrid, Spain....

Brett Steenbarger, Ph.D. said...

Thank you, Paulo; I will pass along on my site. Best of luck with the blog.

Brett