Why is it important to have a positive mindset?
Would it surprise you if I told you that 90% of traders blow 90% of their account
in 90 days?
So, what makes the 10% of traders different?
It’s all about the mindset!
We have discussed in previous newsletters how to get a trader’s mindset, but how
do you keep it once you have it? Think of your brain as a computer, there are always programs running, constantly, whether its everyday life or trading, they are always on. These programmes affect our interpretations, reactions, feelings and whether or not we succeed. So how do we maintain this mentality?
Develop an effective morning routine
By creating a morning routine, it can get you in the right mindset. Visualize your trading day and what you want to accomplish and achieve for the day. This can also relax your mind and help to make sure that your approach to the market will be
calm and effective.
Never stop learning
Always keep learning and pushing yourself to learn new things. Whether it is re-watching videos, going through the videos in greater depth and affirming what you know or don’t know, or learning from your mistakes – find out why the trade went wrong and how you can do better next time. This is the best way to better understand yourself as a trader, where you are going wrong and how you can
Always have your losses under control
Do not wait for your trade to go into a profit, if you see that the trade is not going to turn for a profit, don’t emotionally invest in the trade, rather close the trade, take a small loss than let it run and end in a bigger loss. Know when to close a trade and move on.
Observe the actions of successful traders
This is one of the best ways to learn new skills. Trading is no different from any other skill, the more you do it the better you become. By watching successful traders, you can pick up on their skills, ask questions and better your own knowledge and confidence in trading.
Control your emotions
Emotions still play a big role, we are still human, and emotions are still valid. Fear is involved when a losing position happens and greed when a winning trade happens. Your job is to learn how to control those emotions so that you can maintain a clear picture of the market and make rational trading decisions.
Being successful is not about how much money you have but for how long you can keep it and how you grow it. Small progress is better than no progress. Keep working hard, stay consistent and keep learning. It will happen and success will be there.
Ryan Mowatt, The Performance Coach