Flexibility for the trader to move with price action is the key to successful trading. You can be rigid with your rules and risk management but you must be flexible when it comes to how the future plays out in price action for any market or stock. It is not those that predict the future that make a lot of money in trading but those that react to what is actually happening that are able to profit from price action.
- The ability to change your mind and reverse your trade in the other direction when proven wrong is a powerful trait.
- The ability to admit you are wrong and take your stop loss can save your account.
- Put your ego aside and look at what is happening not what you believe should happen.
- Trade price action not your opinions.
- Always realize the markets are bigger than you are, they are always right.
How to create ‘MENTAL EDGE’
- Discipline to follow their trading plan regardless of their emotions.
- Be patient with winning trades and impatient with losing trades.
- Have the perseverance to not quit at the height of their own frustration.
- Be mentally and emotionally balanced whether winning or losing.With the best traders you can’t tell if they’re winning or losing.
- Have the ability to use logic & reason above emotions in difficult market environments.
- Be mindful of their ego and self and are able to overcome strong impulses.
- Have a strong passion for trading that gives them the energy to keep trading even through many setbacks.
- Able to filter the noise from other people and ignore it and instead focus on the price action, the chart, and their trading system.
- Don’t believe everything they hear, they do the homework to see if it is really true.