One thing that trips up new traders is that they are surprised by the emotions they experience when they start trading with real money. Their ego engages and they don’t want to be wrong, more than they want to win over time. In my opinion, trading is primarily won or lost in the mind. Mental ruin takes more traders out of the game than the math, risk management, or markets ever will. Once the negativity begins, it is hard to break the destructive chain of events. Travel down the right emotional road, and you will be a winning trader.
Choose the emotions that you participate in carefully.
- Contentment: The trader must be satisfied that they are trading the right system for their risk tolerance and beliefs. There should be no internal conflict about your trading method. Your entries and exits should flow with emotional stability.
- Hopefulness: A trader must have the belief that he will win in the long term, and that all the hard work is worth the effort to capture the future profits. If you don’t believe in your trading method, you won’t make it in the markets.
- Optimism: Winning traders believe that they are always getting closer to that next big win or string of wins.
- Positive Expectations: To be successful, the trader must expect heir robust system to produce profits, and not lose faith in what they are doing during drawdowns.
- Enthusiasm: The winning trader enjoys the trading process and loves playing the game. They need the energy of inspiration to drive the necessary dedication.
- Passion: The trader must have a passion to win. Winners are the ones that have the drive to keep learning and growing. A focused passion is what gives birth to perseverance and success.
- Empowerment: The best traders can’t imagine being anything else but a trader. They get joy from their chosen path and love what they do. They know what they need to do to be successful, and they do it.