The road to trading success is not an easy one, in fact, it can be painful emotionally, mentally, and financially, if you do not know what you are doing, this is why only 10% succeed. There will be countless times you will face losing trades and failures that if you are not committed to success in the long term, you’ll succumb to negative thoughts of failure and defeat and just quit.
In order to develop persistence and eventually succeed in your trading, always maintain a belief in yourself and your eventual success, regardless of your current account situation. Keep your thoughts focused on doing the homework needed to take you towards your goals. Avoid negative thoughts and feelings for it will ruin your concentration and persistence. Focus on where you are going and believe that only time stands between you and your trading goals. The power of this belief will surprise you.
You can’t be a winner in the markets or in life if you don’t also have a winning attitude and surround yourself with those who offer the same. It is far too easy when the chips are down and our strategies are out of sync to start beating ourselves up and feel like a worthless moron. That comes with the territory. If it would be easy, everyone would be making loads of the money in the market and we know that isn’t true as most can’t even keep up with the S&P. Remember, trading and investing is not a precise science and a lot more luck is involved than many will tell you. So, in this business, when you fall down, you’ve got to dust yourself off and get back on the horse and, more importantly, keep plugging away. When you start thinking negative thoughts, and we all do, stop them immediately. You can’t consistently win in the markets if you can’t consistently foster and maintain a positive attitude in everything you do.
1. Take a Break
When you have experienced successive losses, you should quit trading for a day. Some traders even have a “punishment” that is assumed by a trading plan: had loss, no trading for a week! Market will not disappear and tomorrow have even more opportunities for you. Do not do anger trades, just take a breath and give yourself a break.
2. Shorten Size
Shorten the size of amount traded considerably. In such a way you will be able to distract your mind of trading for a while and become sensible again. Give yourself time and get back to the right size trading only when you are really ready.
3. Add Money You Didn’t Win
Put the amount equal to the winning trade you didn’t take in your forex account. When you see money in your account, it will make you feel better and take wise decisions.
4. Add Amount You Lost
If you experienced a loss, you can add to the amount you have lost back to the account. You will be surprised at how easy it can become normal again when you do not see your account with losses.
5. Use Visual Effects!
Create a poster or make a note which can remind you of not making unreasonable decisions after bad trades. The note will help you to stay sensible and take only the trades that you can completely understand and pass on all the rest.
6. Trade With Reason
Psychology is a critical factor that influences success or failure in trading. You should have the right psychological reasons to do trades.
7. Be Precise
You should be disciplined. Actually, you should become army disciplined. Bear in mind that emotions should have nothing to do with your decision taken as for the trades.
8. Confess and Talk It All Out
Confess about your losses to somebody nearby or even over the internet, a fellow trader or somebody who can understand your pain. Talking will free your mind from negative thoughts and will bring you back to real life.
Developing a Winning Attitude will stop negative thoughts from creeping in, and outside influences from changing your plan. Here are my thoughts about developing a winning attitude:
- A positive attitude enhances your market performance.
- Don’t dwell on losses if they are part of the system’s performance.
- Attaining a goal starts by having a goal. Avoid setting goals that cannot be achieved. Achieving your goals means sticking to your system each day.
- Achieving your goals means doing the homework before the market opens.
- Achieving your goals means placing all of orders ahead of time.
- Understand how your system is constructed and its maturity before you take the first trade.
- Achieving your goals means following through from start to finish.
- Focus on the next winning trade, and leave the last trade behind.
- Be organized, consistent, set goals and follow through.
1. Frequently visualize a successful trading process. What goes into good trading for you? Make sure you see the preparation required, the focus you have during the trading day, and the continous learning from both winning and losing trades to keep getting more effective.
2. Increase your level of physical fitness, as this will enhance both your trading alertness and give a boost to your self-image simultaneously. Both of these elements make you a more confidence trader.
3. Make a list of your strengths. Review this list regularly to remind yourself of how successful you really are.
4. Eliminate negative thoughts and memories. When they occur, replace them with positive self-statements (for example, “I create my own luck” or “I have a good written plan of how I will execute my trades”).
5. Have a general strategy going into each trading day. When you prepare the day before, you position yourself to be proactive and gain confidence as you implement your plan. How aware are you of what you’re experiencing in your mind, body and soul at any moment? You need to set up a monitoring system at the end of each trading day, to summarize what you executed according to your rules and what you did not. Look for patterns in your behavior, that you can copy if they work for you, or minimize if they are costing you.
6. Create positive body language regardless of the gain or loss on that trading day. The way you act will often influence the way you feel for future trades. The more confident you feel, the more confidence you will show in your trading.
7. Improve on areas of weakness during preparation time and you’ll create more confidence and belief during the trading day.
Focus on one of these seven tips at a time, until you can build that area as a habit in your routine. This will service to greatly improve your trading confidence over time.