Pro Trading Mindset
It is impossible to trade or invest and not find your self into a losing position, that is just the way things are friend and a large trading loss can be devastating not only financially but emotionally as well, how you react to the loss is always important than the lose itself. There are two types of traders, how you manage your trades and how you psychologically deal with losses determine weather you are a professional trader or a novice.
Thinking like a professional
- Never let a bad day cost you more than you make on an average winning day
- Bad risk management can wipe out an account in a short period of time
- After a big loss there is no way to trade with a clear head
- Trading based on emotions and luck is not trading its gambling
- There is always an excuse for a losing trade but as a pro accept the responsibility for your decisions.
- Sometimes its better to take a break and figure out what happens there are times when pros stop trading
Its not all about the money
Professional traders they do not mind about the money or the outcome of the trade, never be results oriented because results they do not change a lot on your trading performance but like a pro be process oriented. Always judge your trades by the way how you have made your decision, if you were following the rules of your game then that is ok when you win that will be fantastic you would have won following the rules and when you lose that is a loss made by religiously following the rules. this gives you much room to improve your thinking processes. Its not always true that when you are making money then your trading is good because money can be made when the trading is bad.
Worry not about the result
When you are a trader and you only judge your abilities based on the outcome of your trades, it is almost impossible to escape the losing mentality and make money in trading. If you believe, after a losing trade, that your trade was bad, that you did something wrong or that your system “is not working”, you are more likely to constantly make changes about your system and trading method.
Process based thinking
Professional traders they orient to think in a different manner from all traders, they live by simple concepts that enable them to trade without emotional pressure. They understand that their edge will make them come out ahead over the long-term, over the short-term losses can occur and are normal they always trust in the edge and do not alter the system. The only job as a trader is to follow principles not to violate trading rules.