Psychology of Successful Trading

State of Emotion before Trading

Am I having a clear mind?

I need to keep my head and my cool and stay calm in times of panic. Trading is hard enough on its own, but when I start to get distracted by things such as personal issues, stress, fighting a position, and having a losing streak, it becomes even harder. When too much is going on, I should find a way to get back on track or stop trading until I can resume with a clearer mind. Don’t worry about past mistakes or losses whether they were a second ago or a few days ago. If I made a mistake, I will get out of it, clear my head and think about the next move.

Am I having inner conflict?

I will not slam the table when I am wrong and stop getting angry and cursing at myself or the market. These things create inner conflict that I don’t need. Learn to think like a pro, and I will start heading in the right direction.

Am I hoping?

I don’t have to think as hard when a system is making all the decisions; all I have to do is follow the plan and hope it is a good system.

Am I greedy?

I will be more successful by not going for the big trades every time and just being consistent. The steps necessary to combat greed include having a money management plan and following it, setting predetermined realistic goals, having targets, and using stops.

Am I overconfidence?

If I get on a good winning streak and accumulate some profits and confidence, I will not start to get cocky and swelled ego. I must always keeping humble and having realistic goals.

Am I angry?

Good traders do not get angry. They keep their cool and don’t blame others or anything else for their losses. I will not waste energy on something that has already happened.

Am I afraid?

When I am wrong, I have to bite the bullet and get out, the sooner the better. I need to realize that it’s okay to miss a move or be a little late on it. If I miss one trade, there will be another one right behind it; if I miss the start of a move, that’s okay as well because I can get in on the first pullback or look to capture a part of the trade and not the whole thing.

Mindset after Entered the Market

Managing Greed

My objective in trading is not to be right or wrong but to manage my risk capital with a modest expectation.

Managing Fear

I will welcome my loss because I want to be the best loser and a long-term winner.

Managing Hope

Even when I lose money today, I will expect to have a good day, since I have followed my trade plan, which has a long-term positive expectancy.

Managing Pain

As a trader, I know my life will be a world a pain. When I lose, it will hurt. When I win, I will think about the missed opportunities, and it will hurt. When I am not in the market, I will believe I am missing out on the next big move, and it will hurt. When I investigate new ideas only to discover they don’t work, it will hurt. I know that maximum adversity exists to fill my trading experience with disappointment and pain. I know its intention will be to diminish my risk capital and stop me from trading. I know maximum adversity exists, and I know it’s potential. I will endure its pain. I will persevere. I will succeed.


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