Most people will think that success in trading depends entirely on the system or trading strategy you use.
Truthfully? It doesn’t.
What it actually depends on, the foundation upon which true success as a trader is built, is your mindset and psychology – how you think and feel about the market and how you react to it.
Websites trying to sell some indicator or robot-based trading system won’t tell you this, because they want you to use their products. That’s the source of most of the stories you hear about people who attempt trading and lose money.
They come into the market with unrealistic expectations. Thinking that they are going to quit their jobs after a month of trading or that they are going to turn $1,000 into $100,000 in a few months. They create a mindset that pressures them with the need to make money and end up trading emotionally – the fastest way to LOSE your money.
There’s a saying: “I’m not here to be your friend. A friend will tell you what you want to hear. I’m here to be your best friend, someone who will tell you what you need to hear.”
Well, I’m here to be your very best friend.
While it is very important to have an effective and uncomplicated trading strategy, it is even more important to manage your emotions. You need both to experience long-term success in trading.
Before you even start thinking about trading and risking your hard earned money – before we even start discussing strategy – you need to enter the market with the right mindset.
The first thing you need to understand is that trading is a discipline. It is a long-term game of probabilities. You will win some trades, you will lose some trades.
But as long as you disciplined enough to stick to your trading strategy, to not be emotionally attached to your losses, or worse – your wins – you will win more than you lose and net a profit.
You need to know what your trading strategy is and you need to master it. Know the market inside-out and have absolutely no doubts or questions about how the numbers needs to look like before you risk your money. You have to become a “sniper.” Once the market conditions match your strategy criteria, you place your trade without hesitation.
You always, always manage your risk on EVERY single trade. The moment you loosen your control, the moment you allow emotion to creep in – you’ll fall into a downward spiral of emotional trading and losing trades.
Only risk the money you are prepared to lose in every trade.
In fact, you should go in expecting to lose on any given trade so that you’re constantly aware of the very real possibility of it happening.
Obviously, you need to be very organized.
Have a trading plan and journal to track your trades consistently. Think of trading as a business rather than a casino bet. Invest with your calculator, not your heart. Stay calm in all your dealings on the market.
Again, keeping your trading mindset right is the outcome of always taking a conscious effort to practice, manage, and control your emotions when it comes to trading.
If you manage to follow all my advice, I won’t guarantee that you will always succeed in trading. I will, however, promise that you will make much better trades than you would have without my advice.
If you want to learn actual strategies in trading though, why not find out at Wealth Mastery Singapore, a program designed by the world’s #1 Life and Business Strategist Tony Robbins. Learn a method of evaluating the market that suits you and stick to it.