Tips to develop a successful trading mindset
Trading always challenges your psychology, this is a fact. for you as a trader, having the right mindset is the key to your success.
Your trading strategy can be useless without the right mindset. you will make mistakes that will never allow you to reach your destination which is making money consistently.
you might Flip an account with overleverage but you know how that end!
The goal is to be a professional investor so you can be reliable to create a good income from the financial market in any condition.
In this blog, I will give you some tips to help you get to that mindset.
The consistency you seek is in your mind , not in the market.mark Douglas
Tip #1: Always have a trading plan.
Let me start with an example, let’s say you have a great idea for a business but you don’t have the money to start, you walk into the bank and guess what they want to see before anything else?
Unfortunately, I’ve seen a lot of traders even with years of experience that have no idea why they need one! the trading plan is a set of rules and information that will help you make the best trades you possibly can.
you can’t copy someone else’s plan, this is very important. you should write your own base on the method and hours that you can trade1
If you don’t have a trading plan click the button below to watch my youtube video about the Trading plan.
Tips #2: Treat trading like a business.
Trading should be treated like it is a business. This is true whether you are trading part-time or full-time.
From scheduling the hours of work all the way to what you want to achieve, not only knowing it but actually sticking to the rules and hours like it’s a business.
As a trader, you don’t have a client or customer that is waiting for you to get the job done OR boss is not there making sure you show up at the right time or did everything you are supposed to do, right! so You are the one who should be the boss.
I’m sure one of the reasons you are trading is to be your own boss but how can you be if you don’t act like one? you have to be the boss who is hard on his people and making them do everything EXACTLY as planned.
do you have what it takes to become a boss? if yes then start with your trading business and show yourself what a great boss you are!
Tips #3: Protect Your Trading Capital.
The first goal for you as a trader is to protect your capital or in other name, survive first!
It’s important because your capital is the one and only thing that is under your control, we have tools like leverage that helps you wipe your account or flip it much faster. also we have Stop loss that will protect your account from losing more than what you planned.
but Do you use them correctly?
When you start thinking about protecting your capital instead of gain when you are trading, then the chance of making mistakes that ends up taking your money because of greed is much lower.
if you survive losing and stay break even on total growth consistently, you are part of winners on the market cause majority is losing!
Tips #4: trade what you can afford to lose.
Don’t trade with the money that you need for any life expenses, including retirement or other long-term things.
If you don’t have any disposable capital, then keep demo trading until you do, or stop trading all together, but whatever you do, do not trade with money you are going to become emotional about losing.
Always assume you could lose whatever money you have in your account or in a trade…if you’re truly OK with that, then your good to go, just make sure you don’t lie to yourself…REALLY BE OK WITH IT. Trading with ‘scared’ money (money you can’t afford to lose) will lead to severe emotional pressure and cause ongoing losses.
Tips #5: Don’t get attached to your trades.
Don’t take any trade personally, just because you lose on a few trades in a row doesn’t mean you suck at trading, likewise if you win on 3 trades in a row it doesn’t mean you are a trading “God” who is immune to losing.
If you don’t risk too much per trade and you aren’t trading with money you need for other things in your life, you probably won’t get too attached to your trades.
I hope these tips going to help you in your journey. I will come back with more trading tips really soon.