In Trading, letting your Gut Feel control you will lead to disaster. Instead, you need to have a powerful mental strength and Positive attitude, See the match of Maria Sharapova V/S No 2 Seed Simona Halep. It was Sharapova’s first appearance in Grand Slam match since drugs ban.
What kept her going was the mental strength, Same applies to Traders You need a Strong Trading Psychology. The most successful traders exhibit these mental habits which help them stay focused even if they making trading losses in short term. The trick is to survive and stay out when things are not in favor.
The biggest enemy to your trading success is not the market. It’s YOU.A profitable trading strategy is not enough on its own, Its like Giving the Best GUN in the world and thinking you can become a God HUNTER. You must also have the right mindset if you want to be one of the only 5% of traders who actually succeed.
Lets focus on Few emotions and how to overcome them
Disappointment- This is major drawback for most of the traders. Many traders mistakenly believe that trading will result in a abnormal amount of money and when going is good they keep increasing the bet size and one bad trade ruins it all. Losses are a part of our business as traders. There will be some days and weeks when your trading exceeds your expectations, and there will be periods when your trading results are far worse than you expected. Successful traders do not fear losses, and they know that a “good” trade is one that they made based on their system, not on how much it profited them.
It’s essential that you maintain a long-term perspective. Most traders only evaluate their performance once a month, trying to have as many profitable months as possible. Hedge/Mutual funds evaluate their performances quarterly or yearly. If you look at your trading results daily, it will drive you crazy. That’s why I suggest that you define weekly goals, and never think of a single day as a success or failure.
Regret = Disappointment in a loss+ Caused by lack of Discipline
Successful traders realize that nothing is 100% foolproof, but, at the same time, they don’t rush into new trades just because they’ve experienced a few losses and want their money back quickly. Neither do they stay in a losing trade hoping that things will turn around. They set their goals and losses and stick to them. They avoid being regretful, They accept loss and keep it in there stride and learn from it.
Too many traders focus on short-term results and lose their perspective. That’s why they fail: they experience a loss or a bad week, and they start trading a different strategy. And while the trading strategy they just abandoned is recovering from the drawdown, the new trading strategy may result in yet more losses, so again, they start looking for another. Successful traders do try to adapt, but they wait until they have enough information to adapt their overall strategy, not just a few individual trades.