Trading Psychology Tips
Do you know what is one of the most overlooked factors in profitable trading? It is trading psychology.
There is an emotional side to trading.
It is true that you can have all the profit, and a consistent advantage if you master the emotional side of trading. So what is it really?
Firstly this kind of trading is a rule.
You definitely can’t turn a profit by carrying out revenge trading. If you are over leveraging, as well as doubling down to “return” at the market, you really can’t turn a profit.
Some people might be able to carry on doing this, but as you read this, we hope that you get the point.
Here are some tips that you have to know:
Self-reflection, and learning trading flaws from others
Never be too proud to look at the flaws in yourself. Have you ever seen or heard about trading failures from someone? You have to take them seriously. If you are able to learn from the deficiency of others, it will be to your benefit.
Why? Read further.
This will make you realize that your issues might be only a little bit to do with your process or system, and more about how you mentally approach the market.
Remember, you will lose money if your approach has a negative perspective. This is true in all fields, not just in trading. Being negative doesn’t always mean that you are actually expecting to lose, but this will result in fear within your trading, because you have not completely accepted the risk in the first place.
A winning attitude should be developed
How about we say, for example, you just had 17 winning streaks in a row. Probably, this is the very best feeling you can ever experience. This is the best experience in the world. You feel that you are totally connected with the market and that money just falls into your account.
If you approach the market with a can-do attitude, you will definitely reach this mental place. However, this won’t mean that you should always have the attitude of “I am right” in approaching the market. You should just simply accept the maximum benefits that the market can provide you with.
Know that the market is limitless
Have you read the market wizard’s books yet? We encourage you to do it. The first one is a classic! While reading these stories from successful traders, you will know why they have made enormous gains, for example, taking a thousand dollars and turning it into hundreds of millions of dollars.
Additionally, their consistency of winning seems too good to be true. These top traders do not really think in terms of their yearly target, and that is the reason why their gains have no limits.
These traders have their own system, and they follow it religiously. Whatever the market presents to them, they take it. If sometimes they see a future windfall profit, they don’t exit the market, as they do not look to rationalize it. They just simply follow their system and let everything flow.
There was someone in 2013 that came up with the bright idea of making 100% in the market. Right now, that guy is at 50%. This trader doesn’t have any expectations about gains. He just likes to turn a profit, but other than that he is done worrying about other things. This should be your mindset and your system. Falling slightly below it, or above it, is the result if you set a target. You might not want to do it, but above everything else, just be positive when you’re going to set targets. By having this kind of system, rules, and attitude, you will inevitably hit your target. What will win in the end is your acceptance, no matter what happens.
You have to know that your current system has very little to do about winning a trade. It will all come down to how you accept the full responsibility for your results in trading. The fact is that the market will give you what you are willing to receive. Accept that you do not have to be right on every trade. You just need to have fun along the way.