Simple Steps For Trading Mindset.

You have probably heard a lot about "Mindset" when looking into the financial trading world, Mindset can mean a lot of things and i am here to explain my spin on a "Traders Mindset".

Everything we do in life requires the right type of mindset, especially if you are trying to step out of your comfort zone. Being a Trader requires a lot of things, Patience, Discipline, the right education, the list just goes on. I would say without the right mindset you will fail at these attributes, i will tell you my personal experience as a trader and how important having the right mindset really is.

When I started trading I was taught about "expecting losses" but i didn't really understand what that meant on a bigger scale. As a novice i was taking losses and i was taking them badly, my emotions was getting the better of me and i was going to sleep feeling like I failed. You have to have to find out who you are as a person pretty quickly, and i discovered i was a very competitive person so losing was out of the question. Going back to understanding the bigger picture, Trading is a game of probability and there is no such thing as a 100% winning strategy (and if someone is promising you that then they are scamming you) You need to understand that with a strategy with a three to one risk to reward, and only having 50% of them trades being successful you will still be in a very healthy profit. When i was taught this i didn't really understand it due to not having the right mindset, i had to re adjust my mindset to see the bigger picture.

Even though you are trading for the short-term it's till a long-term investment, let me explain; If you look at trading as "quick money" you will fail, stop looking at all these fake "Lambo Traders" promoting a quick fix because it doesn't exist. These so-called traders are promoting the poor mindset which is hard to shake once you start trading and realize its not as easy as they once said. So looking at it as a long-term investment, say five, ten years to become successful trader will help reduce a lot of the stress with trying to become rich over night. You have to take money out of the equation and focus on the long-term growth by using percentages.

You need to prepare that you will lose, there is no formula for trading and the most successful traders in the world understand the concept of probability therefore knowing if the have a strategy that is at least a 50% winner they will be in profit. Losses are inevitable and this is why having a strong mindset will help deal with this, I am a competitive person so I set myself targets, let me explain; I know if I looked at the losses for the day even the week I will struggle, so I set myself targets using percentages and for me this helps me keep that competitive edge. I have a 2.5% weekly target and i aim to use consistency for a successful future in trading, trust me i tried to look at trading as "Quick Money" and it just doesn't work.

If you are struggling as a trader then try these simple steps to help you master the mindset;

Step 1.

Set yourself targets example:

Daily - 0.5%

Weekly - 2.5%

Monthly - 10%

Step 2.

Check your mood before placing a trade, for example; if you have just had a losing trade, are you feeling emotionally effected by it? if so do not trade. You could just be feeling tired and this still affects your mindset and your ability to trade believe it or not.

Step 3.

Have a trading plan for example; as a professional trading i use something called S.T.E.M to help me have a more systematic approach to trading. the S being Set-up, T being Trigger, E for Execution and M for Management, when they are placed onto your trading plan you can easily follow them step by step which will help you take the emotions away from trading.

Final Step.

Understand that trading is not a quick fix, as I said before we are being sold a dream via the social media platforms that doesn't exist without hard work. So ask yourself the question, do you really want to put the work in? if not keep searching for that "Quick Fix"