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Trader mindset

Having the right mindset when trading can be the difference between being a profitable trader and having a short lived career as a trader.

There are 3 stages that a trader typically goes through on their path to success:

Stage 1:  “Hoping not to lose money”

This usually happens the first month or so in a traders career. The trader is excited to get started, yet is “scared” that they are going to lose money. When you trade with this type of fear, your trading decisions are usually poor. Meaning you take profits quickly, but more importantly , take losses even quicker because you are afraid to lose money.   This is not necessarilly a bad thing! In stage 1 you should be more concerned about learning how to use the software and how to get in and out of trades.

Stage 2: “Hoping that you can make money”

During this stage, you are no longer afraid to lose money and have begun to build some confidence that you can actually be a trader and make money. You have begun to master the software and know you are more concerned with making good trading decisions than “how do i get in and out”. By this point you should be having profitable days and now you are one step closer to stage 3

Stage 3:  Expecting to make money

In stage 3, you are confident to the point of arrogance. You wake up every morning and know that you are going to make money today! Are you going to actually make money every day, NO. But you have the confidence that you can. The reason you are confident is because you have made money 7 out of the last 10 days, so why wouldn”t you make money today.  When you have this confidence, your decisions are crisp. when you feel good , you trade good.  As a trader, you must determine when you feel good and when you don’t. if you are having some personal issues and alot on your mind, you should step away from trading for a bit until they get resolved. If your mind is not clear, you are going to make bad decisions, and lose money.

Make some Money today!



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