REWIND: Blowing Up a Trading Account with Trading Psychologist Dr. Kenneth Reid

In this Limit Up Rewind, Dr. Kenneth Reid, trading psychologist, shares how his experience blowing up a trading account led him to investigate the psychology behind his trading and then to developing a deliberate trading practice that focuses on the process, not the outcome.

Dr. Kenneth Reid remembers the first day he made $5,000 trading. That was followed shortly later with a day he lost $30,000, sending him down a spiral that eventually led him to lose $130,000 in the markets. As he dug deeper into the psychology behind his trading, he realized that he was trading in an addictive manner, without a well-defined written method. Now, Dr. Reid preaches deliberate trading practice that focuses on the process, not the outcome. If your process is good, the outcome will follow. 

  • [02:48] - Dr. Kenneth Reid background
  • [05:59] - Finding the psychology connection
  • [07:37] - What's your trading style?
  • [09:25] - Why trading on a simulator is crucial
  • [11:35] - Traders need a method that they can explain in 5 seconds
  • [13:52] - Approaching sim trading to make it as real an experience as possible
  • [15:16] - How to view sim trading as an experiment without getting frustrated
  • [16:06] - How long should someone be in a simulator?
  • [18:31] - Getting off on the right foot with a real money account
  • [19:56] - Keys to smart sim trading - Principle #1
  • [21:40] - Keys to smart sim trading - Principle #2
  • [22:19] - Keys to smart sim trading - Principle #3
  • [24:08] - Keys to smart sim trading - Principle #4
  • [30:02] - Keys to smart sim trading - Principle #5
  • [31:48] - Keys to smart sim trading – RECAP
  • [34:45] - What's the scariest trade you've ever made?
  • [37.05] - What piece of advice would you give yourself if you could go back in time?
  • [39:11] - Where can people find you online?

You can find more about Dr. Kenneth Reid at https://www.daytradingpsychology.com.

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Episode produced by Dante32.
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