Home > Beginner education > $Debbie: How do we foster success in our trading?

$Debbie: How do we foster success in our trading?

On my marathon to becoming a professional daytrader of equities, I have recognized some variable (from my personal experience and my interaction/discussions with other traders) that foster successful trading.

First, we tend to enter trading with a pre determined time frame of how long we will or can allow ourselves to learn. Sort of like entering a 12 week class expecting that a successful grade is earned in the end. If you put a time line on your learning curve then your focus will become what you are missing as oppossed to what you are gaining.

Remind yourself often that this is a marathon not a sprint!

Second, when we first receive buying power we calculate how much we need to make perday in order to be financially in tact at the finish of the month. If you focus on making money then your focus on what is most important will be lost. The most important focus is on leanring what a high probability trade looks like and when you will take it and risk capital in doing so.

The focus must be on trading well not how much money one will earn. The money will come.

Third, in the society in which we live we have learned that hard work pays off and our success is measured by how hard we work. This is not true in trading. It is possible to sit and do nothing all day on a difficult day to trade. Doing nothing in trading is a “position”.  If one’s focus is on identifying oportunity and capturing it then the need to be “busy” all day so that we feel like we worked hard for the day disappears.

Focus on finding the opportunity not on being busy so you can say you worked hard.

Fourth, avoid all negative self talk and talk about yourself and your actions or lack of actions in the third person. One must create distance between him/herself and the actual trading “act” so that one can look at the situation as objectively as possible. Support yourself in your own success by positive self talk and positive reinforcement.

Focus on what works and identify what does not work. When you find yourself doing something or thinking about doing something that does not work then state….Jim is thinking about ____________. This has not been very successful in the past so it is not an option in his trading plan. And don’t forget to give yourself a high five on a trade well done.

Last, it is impossible to manage learning how to trade and ultimately your own business from 9:00 to 5:00 like you would any other professional job. The success rate for traders is very low which means that in order to be successful 8 hour days become 12 -15 and weekends are no longer yours.

One must invest the time, focus, and attention to becoming the best trader he/she can be. The competition is fierce and you are going up against some of the greatest minds and sharpest skills in the business. You must become an expert.

Focus on becoming an expert trader. The trading world is so big that one can’t develop expertise in everything. An expert in one or two types of tools (2 sectors/1-4 stocks etc..)  and skill is what will build confidence which will build success.

 Profitable Trading All!!

 

Debbie

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