There is a big difference between the Winner and Loser, and the difference does not lie in the way they choose their indicators or how they define entry signals. Difference lies in the MINDSET of a trader. As a trader we might have a dull period when our trades not go in right direction, same happened to us when first week of Aug trades went against us, but we bounced back sharply in this week and made few good trades based on our gann price and time analysis. Professional traders mindset is about mastering the trading process and not focus on making money. Losing traders focus only on making money.
Most people enter trading with the idea that they are going to make a lot of money. In other words, they have high expectations. There is nothing inherently wrong with that idea. In fact, we need motivation, and making a lot of money can be a great a motivator. Unfortunately, many traders also have low self-confidence. And are not profitable or not trading at the level they desire or are capable of.
This is a fairly common condition that can be expressed in the simple equation:
High Expectations + Low Self-Confidence = Poor or Inconsistent Performance.
As a trading coach, my main focus during my training classes with traders involves changing the equation, where high expectations are replaced with a focus on MASTERING one’s trading process and low self-confidence is replaced with high self-confidence.
The new formula for trading success becomes:
Master Trading Process + High Self-Confidence = Consistent Performance.
This approach accomplishes
Trading well over time requires that we must be rigid with risk but flexible with expectations,we control what we can and let the market do the rest. In other words, we control the risk and are flexible with expectations by accepting the fact that we must adapt to what the market is doing regardless of our wishes. When we do this consistently, we build self-confidence over time.
Of course, before you can develop a trading plan , you must master an effective trading strategy. The price action strategies that I teach are easy to learn and easy to trade, they are also very effective when used correctly. Developing the proper trading mindset takes time and work; it is like a garden that needs to be cared for consistently each day, if you stop taking care of it, it will become harder and harder to get it back on track. The clarity and effectiveness that price action trading provides makes it the best trading strategy to develop your trading mindset from and gives you the best opportunity to learn how to think like a professional trader.