If you have read about my blog How to Maximize Your Profits, it sounds simple isn’t it? Then everyone who follows this should be making massive profits.
In theory, it should be the case, but not in real life. This is because not everyone has the right psychology to follow through to the end.
Here’s a quote from Tony Robbins, one of the best success coaches the world has ever seen:
“Success in life is 80% psychology and 20% mechanics – what you do
– Tony Robbins
doesn’t matter if you aren’t in the right mindset.”
That is why having the right psychology, an elite trader’s psychology, is one of the most important aspects of trading success.
And this brings me to the last pillar of my trading success, which is to have an elite trader psychology. To me, I split “an elite trader psychology” into three sections: mindset, beliefs, and emotions.
Mindset
The markets are constantly changing, and successful traders need to have a mindset that is flexible, disciplined, and focused.
Discipline
One of the key characteristics of a winning trader is discipline. Trading can be an emotional rollercoaster, with the potential for huge gains and losses in a single day.
Winning traders know that to be successful, they need to maintain a consistent approach to their trading, sticking to their strategies even in the face of losses.
They understand that discipline is crucial for managing risk and protecting their capital, and they are willing to walk away from trades that do not meet their criteria.
Focus
Another important aspect of the winning trader’s mindset is focus. Successful traders know that they need to be fully engaged in the markets at all times, keeping a close eye on price movements, news announcements, and other factors that can impact their trades.
They understand that trading requires constant attention and concentration, and they are willing to put in the time and effort required to stay on top of the markets.
Self-Awareness
Winning traders also have a strong sense of self-awareness. They understand their strengths and weaknesses as traders, and they are constantly working to improve their skills and knowledge. They are willing to take responsibility for their mistakes and learn from them, rather than blaming outside factors for their losses.
Adaptability
Another key characteristic of a winning trader is adaptability. The markets are constantly changing, and successful traders know that they need to be able to adjust their strategies as conditions evolve. They are not wedded to any single approach to trading, but are willing to experiment with new ideas and techniques in order to stay ahead of the curve.
Strong Sense of Purpose
Finally, winning traders have a strong sense of purpose. They understand that trading is a long-term game, and they are focused on building a sustainable and profitable trading career over time. They are not driven by short-term gains or the excitement of the markets, but rather by a deep commitment to their craft and a desire to succeed in the long run.
Beliefs
“The market is always right”
Winning traders believe that the market is the ultimate arbiter of price, and they do not try to fight against it. Instead, they seek to understand the market’s dynamics and work with it to find profitable opportunities.
“Confidence without arrogance”
Winning traders are confident in their abilities, but they are not arrogant. They understand that the market can be unpredictable, and that even the best traders will have losing trades. They approach trading with humility and a willingness to learn from their mistakes.
“Patience pays off”
Successful traders are not impulsive or reactive. They have the patience to wait for the right opportunities to present themselves and the discipline to stick to their plan even when the market is volatile.
“Continuous learning is key”
Successful traders are always learning and seeking to improve their skills and knowledge. They understand that the markets are complex and that there is always more to learn.
Emotions
On the topic of emotions, I noticed that this is one of the main reasons why people’s psychology is poor in their trading. The main thing that affects emotions is stress.
When someone experiences stress, their body will release a hormone called cortisol, which can halve their IQ within minutes. When IQ is halved, it prevents fast and good decisions. We all know trading requires fast and good decisions, and not being able to make them can affect trading results.
The solution to this is the feeling of intense gratitude. The feeling of intense gratitude will release hormones in our body called DHEA, which lowers cortisol levels.
This, in turn, makes you smarter and able to make better and faster decisions. It also improves your mood, thereby improving your performance as a trader psychologically.
This works not only in trading but also in your everyday life.
My aim for sharing this is not only to help you with your trading psychology but also to help you with your psychology for life. By making better decisions, you can improve the quality of your life.