Ten Things That Traders Must Be Mindful of

Mindfulness is the practice of really seeing reality for what is really happening in the present moment.  Seeing the facts for what they are and not what you want them to be. The ability to cultivate the equanimity to see the reality of the circumstances you are in without losing yourself to them and allowing them to dictate your own actions.  Mindfulness is the skill of being the witness of your own emotions, ego, goals, and desires instead of having them overwhelm you and becoming consumed by them. What does this have to do with trading. The main reason that 90% of traders fail is primarily due to emotional and ego mistakes not that they were not smart enough. A lot of new traders drift into mindlessness, trading when they do not even know what they are doing or what they even need to know. When the trader’s primary trading signals are their own emotions and ego they are truly doomed. Mindfulness is the way through the learning curve and how the winning traders stay on the profitable path.

  1. Be mindful of the actual trend in your trading time frame instead of mindlessly clinging to your own opinions absent of facts.

  2. Be mindful of whether your trade entry is based on a signal or your own greed or fear. Enter for quantified reasons.

  3. Be mindful of where you really are on the learning curve and whether you should even be trading real money at this point in your journey.

  4. Be mindful of the risk of loss in your trading and don’t just be blinded by the hopes of profits.

  5. You can only control what you do with entries, exits, and position sizes not what the market does after you take a position.

  6. Be mindful that there are plenty of educators trying to take advantage of new traders with incredibly over priced products, the exotic vacations, cars, and houses where more likely paid for by subscribers not trading profits.

  7. Be mindful of your emotions while you are trading and how you handle different position sizes and time frames.

  8. Be mindful of your total exposure to risk at any given time.

  9. Be mindful if your educational trading resources are making you a better trader or if they are taking you down the wrong road and a waste of time.

  10. Be mindful if you are following your trading plan or just trading due to emotional or financial pain.