Beliefs of Successful Traders Vs Unsuccessful Traders
What separates a long-term successful trader/investor from an unsuccessful one? One of the main components is "mental game", as well as being systematic and organized.
These are some of the traits and practices that I've found are in line with success: Mindset and Practices of Successful Traders: The markets provide an opportunity The markets exist to give me profits If I get stopped out then I have to reevaluate the trade If the market doesn't do what I expect then I must reconsider I'll take one trade at a time I don't have to be perfect, I just have to do my best.
Money is not that important Losing is part of the process of making money Trading is a game, I know I can win Every setback provides me with new market information I can wait for an opportunity to come Get pleasure from trading the market as an end in itself Not motivated primarily by money Confident that they can make money in the market Not afraid to take a loss Patient - waits for opportunities Uses a highly planned strategy Is well prepared, done his/her homework Measures the risk/reward ratio of every trade Mindset and Practices of Unsuccessful Traders: I must be in the market now If I lose on this trade I am a loser If I wait for my trading rules I'll miss out If I get stopped out I have bad luck I can't lose money The market makers got me again I'm an idiot, how could I lose money What will they think when I tell them I lost money on this one? The stock market is rigged It's impossible to get a good fill I cannot take a loss If I take my profit then I am right Never define a loss Locked into a narrow belief system Hesitate to make a trade Do not stick to a system Trade by emotion Have no consistent strategy Do not practice risk management More interested in proving themselves right then being a success Bottom Line: Strive to put your trading/investing mindset into the first group of attitudes, and eliminate thoughts/beliefs from the second group.
Shake off your bad trades and learn from them.
A bad trade/investment does not make you a bad person, just as a winning trade does not make you infallible.
Constantly keep improving, both as a trader and a person.
Trade Well! Price Headley, President of BigTrends.
com
These are some of the traits and practices that I've found are in line with success: Mindset and Practices of Successful Traders: The markets provide an opportunity The markets exist to give me profits If I get stopped out then I have to reevaluate the trade If the market doesn't do what I expect then I must reconsider I'll take one trade at a time I don't have to be perfect, I just have to do my best.
Money is not that important Losing is part of the process of making money Trading is a game, I know I can win Every setback provides me with new market information I can wait for an opportunity to come Get pleasure from trading the market as an end in itself Not motivated primarily by money Confident that they can make money in the market Not afraid to take a loss Patient - waits for opportunities Uses a highly planned strategy Is well prepared, done his/her homework Measures the risk/reward ratio of every trade Mindset and Practices of Unsuccessful Traders: I must be in the market now If I lose on this trade I am a loser If I wait for my trading rules I'll miss out If I get stopped out I have bad luck I can't lose money The market makers got me again I'm an idiot, how could I lose money What will they think when I tell them I lost money on this one? The stock market is rigged It's impossible to get a good fill I cannot take a loss If I take my profit then I am right Never define a loss Locked into a narrow belief system Hesitate to make a trade Do not stick to a system Trade by emotion Have no consistent strategy Do not practice risk management More interested in proving themselves right then being a success Bottom Line: Strive to put your trading/investing mindset into the first group of attitudes, and eliminate thoughts/beliefs from the second group.
Shake off your bad trades and learn from them.
A bad trade/investment does not make you a bad person, just as a winning trade does not make you infallible.
Constantly keep improving, both as a trader and a person.
Trade Well! Price Headley, President of BigTrends.
com
