Mindset determines everything.
Mindset refers to mental attitude. It is the way in which we think and approaches situations.
Regardless of how knowledgeable a trader you are, the absence of mental fortitude will prevent you from reaching your true potential.
A winner overcomes adversity, committed to the goal: trading success. A loser is fragile, often surrendering in the face of challenge.
What determines a consistently profitable trader is not so much the trading strategy, it’s their mindset.
Your belief system is everything.
To operate as a successful trader requires belief. Dedication and hard work are necessary to develop competence to establish that belief system.
However, in order to begin your trading journey, you have to initially believe successful trading is possible regardless of others’ opinions. One way of achieving this is by talking to successful traders. You’ll notice they radiate a sense of unwavering self-confidence. This is the zone all traders aspire to.
Successful traders think differently. They approach trading in a structured step-by-step manner. There is nothing haphazard; it’s organised.
Having a daily routine cannot be stressed enough. The more organised and structured your approach, the more successful you’ll be in trading.
The professional trader operates from a tangible trading plan, in place to guide trading decisions and remove as much emotion as possible. When not trading, their routine will also include time for research and learning. While you may possess a winner’s mindset, a solid understanding of the financial markets is still necessary.
Understanding how price action moves, how to perform market analysis, how to search for trading opportunities, how to implement risk management and money management strategies, how to use live trading accounts and demo accounts are all required trading skills.
In order to continue developing, winning traders maintain a trading journal. It is a place to note all necessary trade information in real-time, such as time and date, entry and exit criteria, the emotional impact, and trading results.
Trading Mindset – Key Traits
The quest to reach trading consistency involves crossing rugged terrain. Having the ability to overcome challenges is essential. A winner never loses sight of the end goal.
The same may be said for traders already successful. Trading is a never-ending learning process. To remain at the top of your game, the same tenacity is needed.
Mastering your mind to conquer inner demons is a core element of a winning mindset in trading. The emotional maturity to be mindful of your thoughts helps contain a negative and potentially damaging emotional state.
It is commonly stated trading is 80% mental and 20% technical. Successful traders, therefore, understand the emotional impact trading carries. They understand in order to achieve their goals and make money, losing trades are part of the business. Winning traders do not allow fear of loss to dictate their decision-making process.
Losing trades, particularly those which come in the form of consecutive losses, often cause traders to self-doubt and question themselves. Those with a tested trading system, those who possess a winning mindset, will know to weather losses to achieve their goals.
Successful people recognise self-image helps determine their success. Boosting your self-image increases motivation to achieve your objective. Unfortunately, nowadays most doubt their abilities while winners fuel themselves with encouragement and inspiration.
A winner knows that in order to reach the next level, they need an upgrade. When you upgrade your self-image in your subconscious mind, you provide a foundation to build the life you want and achieve the goals set.
The key difference between winners and losers in trading cannot only be distinguished between knowledge of trading strategies, it is the psychological make-up the trader possesses, the trader’s mindset. Self-knowledge is, ultimately, the key that unlocks the door to trading success.
Harness the art of self-discipline, believe in the process and create a structured routine to accomplish trading success.
A winning mindset is a state of mind.