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LESSON: What is The Perfect Mindset?

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[op_liveeditor_element data-style=””][text_block style=”style_1.png” align=”left” font_size=”16″ font_font=”Montserrat” font_color=”%237e7e7e”]Now you have heard all the common mistakes and the subtle ways in which traders tend to think that hurts their trading results.

So the last point to cover, what is the perfect mindset for trading the markets?

The best mindset has the following characteristics:

• Carefree attitude. Carefree does not mean that you don’t take your trading seriously or treat it as a business.

Carefree means that whether you win or lose the outcome has no bearing on your attitude. When traders first start trading, they generally have this carefree

• Thinking in probabilities and %

When a trader begins to think in probabilities each individual trade becomes less important.

Yes it is super important that you only trade the best setups, however; the outcome of these trades will affect the trader who thinks in probabilities less. This will then lead to the trader not risking too much money on any one trade or getting greedy as they are thinking about a large sample size of trades and this will lead to making solid trades every single trade within their edge.

• No fear for the market.

The trader who fears the market will make a host of psychological trading errors. Staying in a carefree mindset and thinking about your edge over many trades, will help to keep fear to a MINIMUM!

• Clear and consistent thinking.

Trading can be a psychologically difficult business at the best of times. To make the best of the possibilities the market presents us, we must be thinking clearly and making the same decisions consistently. The only advantage we have in the market is our edge and our ability to carry out this edge with consistency.

If as traders we make different decisions and manage trades differently each time, our edge over time will have no chance of playing out, and keeping us profitable. We need to follow our plan and be consistent with our decisions all the time.

• Being stable and emotionally 100% FOCUSED!.

Our decisions and everything we do are affected by the circumstances in our life.

This is no different in trading. If we are feeling down in life, we make decisions to try and make ourselves feel better. This can be a problem in trading. The market is 100% neutral and simply just creates opportunity for us to make decisions.

If we are not feeling 100% in ourselves, our trading decisions are going to be affected. If you are not thinking clearly or if you have had something happen in your personal life that is affecting you emotionally walk away from trading and have a break. The markets are not here as a game, they are not here to make you feel better.

What you crave so much when you feel horrible, the markets will not give you, and markets will in fact give you the opposite. When you’re feeling down and you are making poor decisions, you are going to lose money. Walk away and come back when you are feeling both physically and emotionally 100%.

I hope you have enjoyed this document on trading psychology. More than that however, I hope you have been challenged and been made to reassess how you currently think about your trading and how you need to think. Further discussions on this topic will be held on the Students Forum.

Make sure you now jump below and complete the end of course test HERE if you need any help or have any questions from the course you go into the community forum and post them up!

Safe trading,

Johnathon Fox[/text_block][/op_liveeditor_element]