5 Tips For Building A Successful Mindset
To trade profitably takes many things, all of which are borne of a successful trading mindset. You will never find a highly profitable trader without a successful mindset. You will need mental strength to complete this journey – but just like muscles, this mental strength can be built with proper training.
It is important to keep the perspective your journey and equity curve will not be a straight line. No success story was built without failures, speed bumps, or mountains to overcome. These failures and obstacles aren’t just part of every success story – they help to define them.
Here are five tips for building a successful mindset for trading and life.
#1 “I Can Do This”
A mind riddled with doubt and a lack of confidence will only make the situation more difficult. It will deplete available brain resources, and actually engage emotions which make it harder to succeed in trading.
We will all make mistakes and have losses in trading. To trade is to be married to both wins and losses. There is no way around it.
Trading is not going to kill you. Every obstacle you face in trading you can get through. You must have a mindset that ‘I Can Do This’. This will make those tougher moments becoming more workable.
A successful mindset is willing to keep trying till they get it right. Failures are not used as reasons to give up – but opportunities to grow stronger. By resolving in your mind to find a way, your intelligence, experience and resources will be directed in ways to overcome your obstacles.
#2 Persevere and Stay Committed To Your Goals
The success and change you want will not happen overnight. Thus it is critical to have a mindset that stays committed – one that perseveres. You don’t lose 50 lbs of weight overnight. You will also not become a millionaire overnight with trading, nor be consistently profitable. It takes time, hard work and a focus on the process.
Staying committed keeps your attention, focus, time and effort on things that will bring you closer towards your goals. Build an inner perseverance understanding you will face challenges, losses and mountains to climb in trading. By staying committed to your goals, you will eventually find a way to overcome those challenges.
#3 Stop Worrying About Past Losses/Mistakes
This one is tough, because we are actually wired biologically to feel pain and losses more than gains. We placed emphasis on avoiding threats than on maximizing opportunities. This was simply to survive. But your goal in becoming successful isn’t just to survive – it’s to Thrive!
People who are mentally strong do not waste much time dwelling on the past or getting back their losses. You can wish every second for the rest of your life something you did in the past was different. You could become the wealthiest person in the world, and you still would not be able to change this. Why waste your time worrying about what you lost on a mistake or bad trade?
Far better to acknowledge your mistake and learn what to do differently. This is how you protect your mental capital.
#4 Patience Is Not About Waiting
People seem to think patience is some passive thing where you wait for things to come. Patience is an active process, whereby you understand little things done well build up a big result, but do not come overnight. While one result may take a lot of little actions to get there, you are actively moving forward – working on your growth.
Being patient means working hard for what you believe in taking those small steps each day.
Many times, it will be hard to see your progress. Your equity curve will have flattened and the results you want aren’t there. But that does not mean progress isn’t happening. It is very possible you are advancing. The space shuttle actually has to build up a lot of force and propulsion before it starts to climb. Often times your trading process will be the same.
Keep your focus on the process. That is where you build the momentum. That is where the fuel & propulsion to your success lies.
#5 ‘A Smooth Sea Never Made a Skillful Sailor’
Obstacles, pain & challenges come in two types: 1) Those that hurt or stop you, and 2) those that change you (for the better). Learning from them brings change, growth and confidence. A sailor will never become highly skilled by taking on easy voyages. The best learn from the rough waters they have to traverse. This is no different from trading.
You want to be a successful trader, so accept the fact you’ll have to overcome obstacles and rough seas to get to the other shore.
Strength and confidence doesn’t come from what you can do easily. Overcoming is the currency of confidence.
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