The biggest requirement for success as a day trader is the ability to control you emotions. In order to control your emotions, you need to understand how your mind works and do a deep dive into human psychology. While there are several areas of the market where you can say “it depends” on whether or not it has relevance to you, the topic of psychology and emotions apply to ALL day traders. The human mind is a tricky place and when you’re not aware of all the mind games that occur, you will enter the world of frustration. In fact, even someone like myself who is well aware of these mind games still gets tripped up. One of the most common mind tricks our brain plays on us is known as The Recency Effect. In many areas of life it is helpful and makes perfect sense on why our brains are wired this way. When you move into the world of online trading however, what is often a helpful thing becomes a hurdle to overcome. What is the recency effect and what does it look like in the real world of day trading? Let me show you using some of my personal day trading stock results that I captured, live, on video.

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