Successful trading starts in our minds.
This isn’t some fluffy nonsense. When was the last time you made a great decision that positively impacted your life while you were upset, pissed off, or depressed? …It just doesn’t work that way.
Most traders never consider how their mood affects their behavior. They’re just so eager to dive into action.
Fortunately, mood is one of the main reasons why we have these “crazy” moves in the market. Why we’re able to anticipate them. Why we’re able to profit from them.
It’s a huge edge if you use it. Most never master their mindset. If you master yours, you have a tremendous leg up on most other traders.
HOW TO GET STARTED
Your progress can happen fast or it can be slow. It’s really up to you. Within 6 months of changing my mindset I was transformed into a completely different person. Happier. More focused. Less impulsive.
I got to a place where I realized that whether a trade goes poorly or well, I’m not my thoughts. And just because a thought enters my mind it doesn’t make it true.
START WITH WHY
So, like Simon Sinek says, before we do anything else we’ll Start With Why. Why do you want to trade? What is your goal? Your objective? It’s different for everyone and your success or failure in part depends upon how well everything lines up with your goals and objectives.
Few things are as powerful as clarity, especially for traders navigating a seemingly chaotic market.
So lets get crystal clear on why you trade!
Some traders trade for some big material thing or experience for themselves or for their loved ones. Houses, cars, education, weddings, retirement, financial freedom… the market can help you achieve all of these.
Other traders are trading for the sheer enjoyment of it. They see it as a great game. A giant puzzle that’s never complete yet fun to try and solve.
Some are doing it to generate an income. Others love the drama. Some love the technical aspects. Some love the story. The financial data…
There are tons of things that draw individuals to the market. It’s often a blend.
It’s worth asking yourself the question… what draws YOU to it? What do YOU want out of it? Why do YOU want those things?
After you complete the ‘Why’ exercise you’re ready to move on.
SETTING UP YOUR ENVIRONMENT
Realize that your mind & mood are connected to your environment.
To create a great mindset and reach your trading goals, we need a great environment. This isn’t just our physical space but our mental space as well.
Everything we watch, read, and listen to is a part of our environment. The people around us are part of our environment. The 4 walls we live in. Our communities. Our virtual spaces including our social platforms, our desktops, our phones… Everything is a part of our environment.
Each of these parts can contribute to or draw from our success. It’s vital then that we audit it… ALL of it.
For each part of your environment ask yourself “how is this helping me meet my goals?”
If you find that it isn’t, ask yourself “can I get rid of this?”
If the answer is yes, get rid of it. If the answer is no, ask yourself why. Then ask yourself why to that answer, and the next. Kinda like a little kid that keeps on asking the question “Why”.
It was tough then and its tough now but it gets to the roots and will help you reconcile your limiting beliefs. You may end up being able to remove the thing you thought you couldn’t. You may end up adjusting your objective or perhaps evolving it. But you won’t know unless you go through this exercise.
Now that you’ve cleaned house and purged a lot of trash, you can start adding new things.
What can you add that will help you meet your goals and objectives? What will make you happier? More alive? More energetic? What new knowledge might help you? What new routines may help you? What new relationships may help you?
Some answers will be obvious and leap out at you. Do those. If the answers don’t come quickly, don’t worry and don’t spend lots of time pondering. The answers will present themselves when the time is right.
The fact is this…
Traders who leverage their mind well, win their trades bigger & more often, while losing only minimally, or are able to bounce-back easier.
The traders you look up to Buffet, PTJ, XYZ, ABC, etc. all do this naturally. Do yourself a favor and let me help you join them.
Come to one of our trading events. We hold several throughout the week. CLICK HERE.
Best selling author. Trader. Coach. His mission, help you succeed in the market as he has with thousands of others. He has spoken at AAII, Stocktoberfest, Benzinga’s Global Fintech Awards, and has been featured on NASDAQ Live.