Mike Baehr - Introduction to Trading Psychology: A Practical Guide to Improve Your Trading Psychology

Published in Camarillo, CA

www.BearBullTraders.com

Copyright Mike Baehr 2021

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means without the prior written permission of the publisher, nor be otherwise circulated in any form of binding or cover other than that in which it is published and without a similar condition being imposed on the subsequent purchaser.

Baehr, Mike

Introduction to Trading Psychology: A Practical Guide to Improve Your Trading Psychology

ISBN: 9798746096371

Imprint: Independently published

Book typesetting by Nelly Murariu at pixbeedesign.com

DISCLAIMER

The author and collaborator, and www.BearBullTraders.com (the Company), including its employees, contractors, shareholders, and affiliates, are NOT an investment advisory service, a registered investment advisor, or a broker-dealer, and they do not undertake to advise clients on which securities they should buy or sell for themselves. It must be understood that a very high degree of risk is involved in trading securities. The Company, the author, the publisher, and the affiliates of the Company assume no responsibility or liability for trading and investment results. Statements on the Companys website and in its publications are made as of the date stated and are subject to change without notice. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable nor that they will not result in losses. In addition, the indicators, strategies, rules, and all other features of the Companys products (collectively, the Information) are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented are for educational purposes only. Accordingly, readers should not rely solely on the Information in making any trades or investments. Rather, they should use the Information only as a starting point for doing additional independent research in order to allow them to form their own opinions regarding trading and investments. Investors and traders should always consult with their licensed financial advisors, and tax advisors to determine the suitability of any investment.

Contents

Foreword

When I first discovered trading 25 years ago, it was a Trial-and-Error adventure. They didnt have to throw us novices in the pool, as we jumped in with both feet, but we had little awareness of what we were getting into.

It was a roller coaster ride while it lasted, but as most of us were entirely focused on Reward, not Risk, many of us were blindsided when the dot-com bubble burst, and we left trading for greener pastures.

After the Financial Crisis, interest in the stock market briefly recovered, but by 2019 funds were flowing out of U.S. equity mutual funds and ETFs faster than at any time in the previous 25 years.

COVID-19 changed all that

Fund flows into equities surged in 2020 as trading and investing became a viable work-at-home option, producing the strongest bull market in history.

Meanwhile, newcomers now have tremendous advantages compared to the old days, especially when it comes to relevant education and training. By that, I mean, coaching in both technical methods and trading psychology; the two go hand in hand.

That said, trading for a living isnt like a normal job; its more like combat than commerce. And to prepare for this adventure, aspiring traders need something similar to Boot Camp, not just a business plan.

After he joined the Marines, Mike Baehrs personality was transformed in Boot Camp. It forced him to grow up and almost overnight become a disciplined, accountable, and mission-focused adult.

Trading will transform you, too

Trading is an accelerated learning opportunity not just about the market, but also about yourself. If you have rough edges, it will smooth them. If you have weaknesses, it will force you to strengthen them. If you have secrets, it will turn you inside out like a dirty sock and you will have a chance to come clean.

Mike has been through it. Andrew has been through it. And you can trust these guys as Sherpas on your climb to the Peak.

If you surrender to the process, trading will make you a better person.

And you might make some money, too.

That last part depends on how well you rebalance your trader personality, and whether you are able to use the markets cryptic feedback as a motivator to do better.

There is a wealth of information about this alchemical process in this book, written in plain language. Follow the White Rabbit down the rabbit hole with enthusiasm. You wont be disappointed.

Kenneth Reid, Ph.D.

April, 2021

Santa Fe, NM

About the Authors

Dr. Kenneth Reid is a trading coach and educator with a Ph.D. in Clinical Psychology. He began his trading journey in 1996. From 2001-2012 he worked as the Senior Editor, Head Trader, and Virtual Portfolio Manager for one of the largest financial newsletters in the U.S. Dr. Reid retired in 2012 to pursue coaching and software development full time, along with trading futures for his own account. Through his highly praised Mastermind Pro program, Dr. Reid is providing the Bear Bull Traders community with insight-packed, HD training videos that reveal the advanced mindset, techniques, and tactics that traders need in order to win in todays volatile financial market.

Dr. Reids website is

Dr. Andrew Aziz is a Canadian trader and proprietary fund manager at Peak Capital Trading, a Forbes Council member, an investor, and a #1 best-selling author. He in fact has ranked as one of Amazons top 100 best-selling authors in the Business and Finance category for over four consecutive years. His books on finance and stock market trading have to date been published in eight different languages (English, Chinese, Portuguese, Russian, French, Spanish, Vietnamese, and Japanese).

An entrepreneur since childhood, Andrew actively invests in FinTech companies related to the development of AI for trading. He is the founder of Bear Bull Traders, an online community of independent day traders that is dedicated to making trading better for everyone. When not at his trading station, Andrew enjoys trail running, climbing, skiing, and high-altitude mountaineering. He is currently on a mission to climb the highest volcano and the highest peak on each of the seven continents.

Mike Baehr is the Chief Training Officer at Peak Capital Trading and one of the trading coaches at Bear Bull Traders. Mike previously served in the United States Marine Corps, retiring with the rank of Sergeant Major after 23 years of active duty. During his time in the military, he devoted countless hours to teaching, mentoring, and inspiring generations of Marines in areas such as leadership, discipline, and resilience.

As Mike began to conquer the learning curve of trading, he soon realized that the skills he taught Marines were also very relevant for traders as they work to master the psychological challenges inherent in trading on the stock market. While building the curricula for Peak Capital Trading and Bear Bull Traders, Mike has had the pleasure of collaborating with several different trading psychologists, including Dr. Jonathan F. Katz. With Dr. Katz, Mike has developed a series of trading psychology educational webinars on subjects such as dealing with losses and uncertainty, becoming disciplined, practicing mindfulness, and being resilient. Mike has been happily married for over 20 years and has two wonderful children. Outside of trading, he enjoys spending time with his family, volunteering as a soccer referee, and running.