You can look everywhere.
You can look at every single corner of the Forex, Binary Options or Cryptocurrency trading worlds, and you will never find a successful trader, who hasn’t build for himself a bulletproof trading mindset.
If you want to succeed as a trader, it is elemental that you count with the mental strength to keep you going, when your boat is starting to get full of water.
Like every other single business in the world, your results will not always be great, and you will, at some point, feel the pressure to quit.
That’s just the way it is.
No success story was ever built without the failures, the obstacles, the mountains and seas to overcome.
“No profession requires more hard work, intelligence, patience, and mental discipline than successful speculation.”
At this point you might be wondering if you do have what it takes to endure the hard times…
I got GREAT news for you.
A strong mindset is not something you are necessarily born with.
A killer mindset can be built, in the same way you can build your body with constant exercising.
Just like those skinny guys which work really hard at the gym and after one year they are have completely changed their body and look like Arnold Schwarzenegger’s, you can do the same thing with your trading mindset.
Here are 6 essential tips to build a money-making trading mindset:
1. Avoid greed & fear
These two are by far, your worst enemies.
These are those dangerous guys your parents warned you about when you were a little kid.
Stay away from them!
It is of vital importance that when these two emotions arise on you, you suffocate them as soon as possible.
Getting greedy when you find yourself on a good winning streak, or being paralyzed by fear on a bad losing streak, are sure paths to failure and loss.
So be careful!
Before starting a trading session, always remind yourself two golden rules.
- When you find yourself on a winning streak, you need to know when to stop.
Set a goal for the day/week/period, and once you hit it, close your charts and go do something else.
Do not get greedy!
Rising your capital with trading is something that requires a lot of patience and discipline, so don’t fall for the illusion that you will make big money overnight.
Winning streaks have the capability of fooling yourself, and if you fall into the illusion… you’ve lost.
2. Keep a neutral attitude
Sometimes, successful trading is merely not reacting.
With constantly moving and volatile markets, keeping emotions in check is a huge task.
The rule here is straightforward; either stress controls you or you control the stress.
When it comes to trading, rationality should be your priority.
Emotions have no place at all.
Trusting your instincts and moving on wildly will eventually prove to be a direct road to failure.
Emotions distort your view of the market.
Emotional trading, therefore, is not based on what the chart really tells you.
Emotional trading is based on what you want the chart to tell you.
So it is very, very important, to remind yourself before every single trading session, that the more of a robot and the less of a human you can be, the better you will do at trading!
PRO TIP – Leave your robotic self only to trading, do not act as a robot with your family or friends!
3. Be responsible
If you want to be a successful, profitable trader, you need to take same responsibility for your wins as for your losses.
Before you make any trade, make sure to know why you make the trade.
Assuming full responsibility for your actions, is an important step to becoming a better trader.
It is of crucial importance that you understand that blaming anything or anyone but yourself for your performances will lead you to nowhere.
If you win, naturally, you will not give credit for your success to a determined broker, strategy, indicator or trading system, but you will credit yourself, your skills, your learning and your patience!
Congratulations! Your hard work payed off!
In the same way, if you lose, you shouldn’t blame a broker, strategy, indicator, or anything else but yourself. Instead, you should analyse what went wrong and work on your skills, learn new things, try a new strategy, and so on.
You need to own it.
If you are able to acknowledge that your trading results depend 100% on yourself, the trader, you will dominate the markets in no time.
You cannot change what you are not responsible for.
Take full responsibility and you will soon find plenty of areas to improve.
4. Prioritize profits over being right
In order to trade profitably on a constant, steady basis, it is of crucial importance that you stick to your strategy no matter what.
Once you’ve come up with a trading plan, stay loyal to it as you stay loyal to a good, life-time friend, or as a dog stays loyal to his owner.
Support your strategy in the same way you would support any family member who is excited for a new project, although you don’t think it is the best idea.
If sticking to your strategy means to take a losing trade, so be it.
The most important outcome of trading Binary Options, Forex or Cryptocurrency, is, ultimately, making money (at least that is what I think).
Do not try to be always right, to predict the market as much as you can.
Leave your ego and pride by the side, and focus on the profits.
If that means you will lose half of your trades while trading profitably, it is still better than winning 70 percent of your trades and losing money, don’t you agree?
“Nobody is more right than the trader that made a nice profit this month.”
5. Discover and grow your strengths
It is well known that to succeed in any possible area of life, one of the keys is to focus on your strengths.
There are no successful artists, businessmen, entrepreneurs or athletes that will tell you not to do so.
Trading as a discipline, is no different.
In order to make money trading, first of all, you need to be yourself.
Be authentic. Be real.
If you do not know yourself you cannot be your best version and you will never rise to meet your full potential.
Work on yourself as hard as on anything else.
Purge weaknesses and learn to stay away of temptations and pitfalls.
Find out your greatest strengths and use them. Those strengths are your ultimate key to success.
- If you find yourself, for example, to be having better results on swing trading than as a trend-follower, then focus on swing trading strategy.
- If you see you can achieve profitability much easier on Forex than Binary Options, then focus on Forex.
- If you enjoy reading and getting informed about Cryptocurrencies, then redirect 100% of your attention to them and trade Crypto.
You get the point.
Work hard on your strengths and do not waste time with your weaknesses.
As I have explained many times before, trading success is no different that success at any other type of business, at all.
It takes time. It requires patience. Time needs to be invested.
But.. with the appropriate mindset, this process can be much faster and easier.
I really hope this posts help you somehow to become a profitable trader!
Please, hit me up with any comment, feedback or suggestion, it is highly appreciated!
And if you have any friend that could use this post, just send it to them!
Kind regards and Happy trades,