Updated: Jul 25
You already know that every damn trading error you made until today has a straight connection to how you think and how you feel (emotions) about the information thrown by the markets.
Working on our trading psychology will help us perform better as a trader.
But where to start?
Add this to the fact that a lot of advice on trading psychology is frustratingly difficult or overly theoretical. It's no wonder that many traders are put off making a start to work on their trading mindset consciously.
So, let's dive in and understand few things you can immediately start to implement to set you on the right path towards more superior clarity in your trading venture.
If you go through any trading related discussions, you'll be able to spot the novice traders straight away. They are the ones who talk about stop hunting and errors of brokers. They always blame others. Traders evolve once they start to take responsibility for their trading decisions and stop being a victim.
You need to recognize & realize that you alone are accountable for your trading decisions. I know it isn't easy, but fully embracing this fact is the start of the valuable mindset work needed to move towards trading success.
Impartial journaling of trades
Trust me; it's most challenging to be honest in updating and managing trading journal regularly. It took me a long time to take on board, and I've since realized that the things you are most resistant to are often precisely what you need to do. So, if you have been putting off starting a trading journal, or if you have dismissed the idea, grab a notebook or open up a new document and start one today.
Some journals list the "numbers" of the trade, i.e. entry, exit, risk, result, but that is not the most important information as far as mindset work goes. Describe the mechanics of the trade and include what you felt before, during and after the trade.
A detailed journal builds up a beneficial insight into your trading mindset. You'll start to build a picture of why you trade the way you do, you'll begin to spot recurring patterns, and you'll get to know what is going on between your ears and the actual results.
Physical & Mental fitness = Trading Fitness
Even there is a distinction between the body and mind, inherently, they are co-related. So any work you do on your physical and mental health will pay off in better trading.
How many traders put off working on their health, thinking they need to put in hours for a few years and then look after themselves? The truth is that avoiding eating correctly, getting good rest, and regular exercise is like avoiding trading success.
I am the best example of it; I used to think I need to put in a lot of time to be consistent. But in this course, my physical fitness went into toss and I ended up putting on weight and reached 125Kg's from 87Kg's (refer to the below image). After getting into the operation theatre (Minute operation because of weight), I realized how important life was.
It was the actual trigger point for converting my entire trading to a completely algo based module. Now I have reduced my weight below 95 and still working consistently on shredding the extra pounds. The best part is my trading results have improved to a greater extent.
By looking after yourself (Health & Fitness of body and mind), you improve your quality of life and enjoy life more. As a side effect, you also become a better trader because of it.
KISS (Keep It Simple & Sweet)
This concept can be tricky. We are influenced to add to our trading method; look at more timeframes, add more indicators or search for more instruments. But I was still at 0 even after filling up my trading screen with all vibrant tools and indicators.
Most of us are brought up to believe that more information is a good thing. Still, greater complexity does not necessarily equalize to greater profits. In fact, the more complex your method, the more mental battle you will encounter in trading.
In contrast, the simpler your trading method, the easier it'll be to access what is going on in your mind when you trade. You'll be able to cut through the noise and analyze the state of your mindset during a trade.
if you want to improve your trading results, it's a fascinating journey, and all the way, you'll get to know yourself better. You'll start to change the patterns that prevent you from becoming a calmer, clearer, more focused, and more disciplined trader.
Working on the mindset is the most critical factor in your trading success. You only need yourself and a willingness to make a start, and you can start today...
Happy Trading 😎
Wishing you most and more,
Twitter:https://buff.ly/39LmQqD | YouTube: https://bit.ly/3j5tvkh | Blog:https://buff.ly/33LZZYm | Book:https://buff.ly/2RR4UAU | Online Courses:https://buff.ly/2Kywmmm | Quora:https://buff.ly/3qrluY0