Traders mentality or Trading discipline. Developing a healthy mental attitude towards trading is an integral part in being a successful trader. In order to Shield yourself from sudden misfortunes a strong mental attitude is your primary defence.
In today’s world, with the technology we have available- its no wonder a record number of people are wanting to make money trading. The place where I see many people find difficulty or stub their toe is when it comes to adopting the correct mental attitude needed for trading.
Many people underestimate the importance of having the proper mental approach to trading- its not as simple as just knowing ”how to do it” you need realise that in order to be mentally prepared for trading you have to be ready for the ”mind game” aspects of trading.
The proper mind set that I’m speaking of here is the result of self-discipline and habit. Without exception, all consistently profitable traders have a winning attitude. Some develop it the hard way, and for others it comes easily. No one started trading, and went on to have success, without having the right attitude.
Successful traders take full responsibility for their own actions and when it comes to trading they’re no different. It ‘s much easier and more convenient to blame others for our mistakes so there are a number of people not wanting to own up, and take responsibility for what they do. Traders who are successful, realize that their success or failure is all their own. While it may be convenient to blame the brokerage for a bad execution, or blame the signal service for a string of bad trades, the ultimate responsibility for your actions falls directly on your shoulders, and you know it. You can learn a lot from an experienced trader, but your results are the result of your actions.
Stay emotionally neutral- Keep Your Emotions Stable
Save your emotions for the things that really matter in life like family and friends, not trading. Successful traders don’t get too high when they have a winning day, and they don’t get too low when they have a losing day. Taking a loss is as much a part of trading as is taking a gain. The difference is in how you emotionally deal with the losses and the gains. The market fluctuates all the time, but successful traders don’t come home and kick the dog after a bad day. Successful traders don’t let the stock market put them on an emotional roller coaster ride. Staying emotionally neutral is the key to long term trading success.
”Newbies” or New traders often experience a “burn out“, which is more a result of emotional ups and downs than anything else. Don’t buy in to the hype that is constantly coming out of Wall Street. Don’t get frightened when the market falls or phone home when it roars higher. Just trade it.
MAINTAIN A CONFIDENT MINDSET
Most Aspiring day traders do not pay enough attention to their own mental state. They pay far too much attention to what just happened in the market and are not mentally prepared.
Successful day traders actively manage their mental attitude in order to maintain confidence in the face of uncertainty, they practice discipline in the middle of randomness. Maintaining a confident mental attitude is a skill that can be learned. Top athletes practice it. Top traders practice it. You can, and should practice developing and maintaining a confident mindset!