Our Strength – Index – Prasan Vidya Bala Mandir

To be successful on the stock market, traders need to "reprogram" their brains: five tips from Norman Welz, psychotherapist and trading psychologist, who has also been trading the markets himself for many years.

1. do not overvalue individual trades

In everyday life, we live in the world of success. "I get up in the morning, brush my teeth, go to work. The fact that I manage to do this is more or less taken for granted," points out psychotherapist Welz. It therefore causes us difficulties when we get into situations that we cannot control, he says. "One blockage is wanting to perfect every single trade. And to punish yourself mentally afterwards when that doesn't work out." It's the sum of all the trades that makes you successful, he said. "Professionals collect profits slowly."

2. set realistic goals

Which system works for individuals cannot be generalized. Personal goals are just as important for this as mental strengths and weaknesses. The question is: With which way of acting do I make small gains over and over again? "Realistic goals are immensely important," emphasizes the trading psychologist. "Getting rich quick" is not a realistic goal. "With that, you only frustrate yourself over and over again," Welz says. "A goal can be: 'Today I trade one or two trades, and do it exactly according to my plan.' Then I can achieve the goal, and that motivates me."

3. Write down the trading plan

It is helpful to write down the plan exactly and not just to put it in your mind. Why am I buying? How do I act when the market turns against me? Why do I sell? Do I want to trade fundamentally or by technical analysis? "It's about making a guideline, an instruction manual," Welz emphasizes. You should stick to this plan as closely as possible and not immediately make a new one if it doesn't work out.

4. repeat precisely what has worked

"The brain is not made for trading," notes psychotherapist Welz. "The evolutionarily older parts of the brain are primarily concerned with preserving the species." These strive for security and then trigger fear, for example, when something unexpected happens. "To trade in https://exnesscom.com/stocks-trading/ successfully, I have to reprogram my brain in some ways." That means repeating precisely what you've done right. "Studies show that for all the things we do right 400 times, we build unconscious competence - like brushing our teeth."

5. Accepting a "no"

Emotions always come into play in trading, subconsciously steering actions in a certain direction. "These are mechanisms that run faster than we can consciously think," trading psychologist Welz points out. No one likes to hear a "no," for example. That is an attack on the ego, he says. "But if you have set a stop and are then thrown out of the market, you have to accept this 'no' from the market to your trading idea."

Bottom line:

The subconscious often inhibits trading success
A written trading plan helps to make the psyche your ally
Realistic goals are a prerequisite for achieving them.
Trading is a process: professionals collect profits slowly