Mindset Shifts for successful trading

By | June 2, 2016

 

Don’t Chase Trades; Let Them Come to You

If trader win a trade, he try to force another winning trade and mostly lose in second trade. And if trader lose first trade, most of traders try to quickly make back what they lost on the next trade.

This irrational behavior is mostly seen in person who are doing job. All salaried guys  hard-wired to work from 9-6. If we work any less, we somehow feel that we don’t deserve the money we’re making. We believe we must “work hard” to earn a living.

This belief often carries over into trading, and so we “work hard at trading.” We enter trades even when there aren’t any good trades available. We trade for trading’s sake. Then, when our poorly placed trades move against us, that gambler’s fear of loss kicks  and we begin making even more foolish decisions, which compounds our losses.

So Let the good trade come to you, Do not run or rush for the trade.

You don’t have to trade every day or even every week to make a very good living as a trader. You only have to make a few good trades when the opportunities present themselves. In trading, patience is most definitely a virtue.

Hit Singles before you try to Hit 6

Most of us watch cricket, Do any player Hit 4 and 6 on each and every ball ?

But in trading most of traders want every trade to be super duper hit .But it doesn’t work this way

With that in mind, it’s much better to aim for small consistent wins. Small consistent wins are much more realistic. And compounded over time, small wins can add up to truly staggering numbers.

The best part is this: While you are focusing on small consistent wins, you’ll be sure to experience some big wins as well, a natural byproduct of your “win small” strategy.

You Don’t Have to Win Every Trade

Sachin is considered one of the greatest cricket ever, did he score century in each and every match, Was he never out on Duck or single digit. He did it many time but over a period of time he scored runs on consistent basis and that’s what counts

The last mindset shift – and possibly the most difficult of all – is to understand that you don’t have to win every trade to make good money as a trader. In fact, losses should be expected and planned for.

Ultimately, it’s how you react to losing money that dictates whether you’ll succeed over the long haul. Do you stick to your stops? Do you follow your money management rules?

 

Change Your Mindset, Change Your Trading Account

The truth is, you trading account reflects what’s going on in the gray matter between your ears. So the next time you start wondering why you’ve been on a losing streak, or why your trading account is shrinking, take a moment to self-reflect.

 

10 thoughts on “Mindset Shifts for successful trading

  1. sunil360

    This one statement can change the mindset of a trader ” You don’t have to trade every day or even every week to make a living as a trader”.
    The key to success in trading is you have to be as lazy as possible.

  2. rganiga

    Well said, majority of us do the same. inspite being members of this great JNU, We forget the mantra given by Master Get Rich Slowly and Quietly

  3. ramanujam

    Bramesh ji,

    what you said above is 100% per true in my case . I am trading in same wrong strategy ..i need to control my mind , which is not agreeing for losses most of the times and accumulating huge losses by end of day /month ..

    Thanks
    ramanujam

  4. Santosh

    Well Said Sir. “you don’t have to win every trade to make good money as a trader. In fact, losses should be expected and planned for.”

    Please forward any books / journals on trading with strategies or methodology, risk management,etc. (ksantoshk9@gmail.com)

    Thanks & Regards,
    santosh

  5. Bramesh Post author

    what matters for a trader in execution of his trading plan .. So whether its a trending market or sideways its the ability to execute plan with least discomfort is whats counts.. If a player can only play on flat pitches it will not make him great.. similarly trading in uncomfortable situation is what makes a great trader..

  6. shivakswamy

    Nicely written..

    The true character of a trader comes only during corrections.. In a trending market most traders will make money..(is it par with the move is a different question)..Your views on handling correction will be of great help.

    Rgds

  7. nitin

    ‘ your trading account reflects what’s going on in the gray matter between your ears’…………..so true.

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