In trading psychology, there are two kinds of trader’s mindset. One that fails to seal a deal and one that recovers from failures. There are traders who see failures just a small setback. And experience where they get to objectify what went wrong to avoid similar mistakes to happen again. A winning trader sees these setback a parts of the steps towards success.
The mindset of a losing trader does not work this way. Success only comes to those who really
really want it. Losing traders tend to take responsibility for their actions. They tend to blame external factors for their mistakes and losses. In order for a losing trader to become a winner trader, one must take responsibility for his action.
Every successful trader has a dream to succeed. Their thoughts are followed by actions. Losing traders tend to leave their thoughts hanging. They may spend too much of their time talking or visualizing. What is required is action. Traders who think too much tend to look for the perfect opportunity in a deal. What happens is that they also tend to switch or move from one method to another making it difficult for them to find the sign that they are looking for.
Traders who think too much, needs to know the effect before they make any decision. Trading is a combination of risk taking and use of a good methodology. This kind of trader looks and demands perfection every time. This compromises their ability to take risks and therefore their ability to trade.
The opposite of thinking traders are those new traders who lack patience and discipline. These type of traders get caught up in their emotions or ideas that they make decisions that they regret in the end. They rush without thinking of the trading plan or method. They are driven by success but they clearly lack discipline. They completely rely on their instincts. They may go on with a deal thinking that eventually everything will go all right if something goes wrong. Unlike thinking traders, undisciplined traders trade recklessly with their capital.
It's really a good idea to probe a little deeper into the subject of mindset. What you learn may give you the confidence you need to venture into new areas.
So if you think you are on the losing trader’s other side of the fence, how to get to the other side? What is the running in head of a successful trader?
When the trader’s confidence is down and shaken, then there will be bigger to resolve or willpower to finish the job.
Successful traders are not afraid and overcome of fear when making chances. This does not necessarily mean that traders are reckless. One has to take calculated risks. There are also people who trade because they want to achieve their dreams. Successful traders sit down and depend on the plan that they made. A trading plan will make sure that you are following a trading method.
Another key to success is implementing your strict management rules and following them mechanically everyday. Traders must be disciplined, stay in control and not let either fear or greed rule them. They must cut losses short, maximise gains and most importantly of all; protect their capital. A losing trader can change their trading mindset for the better. A healthy and a disciplined mindset can be the start of a losing trader’s journey to success and high profits.
Now that wasn't hard at all, was it? And you've earned a wealth of knowledge, just from taking some time to study an expert's word on mindset.
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