Build a Successful Trading Mindset

Is a profitable trading system not working for you but IS working for someone else? Do you find yourself feeling like an utter failure? You may not realize this, but the most important skill that a trader can have is their mindset. A lot of traders do not agree with me on this. But I believe mindset is the missing ingredient that separates successful traders from unsuccessful traders. You need to work hard to develop a profitable and healthy mindset. It’s all based on how we think. In fact, as we have discussed in previous episodes, trading psychology can be just as important as having access to good technical indicators or good information.

If you want to achieve success, you have to change and think differently than you did before. So in this episode of How To Trade It, I share some attitudes that are necessary to adopt for a successful trading mindset. I also share some practices I put into place daily to improve my chance for success. It will be uncomfortable. I’m asking you to do things you’ve never done before. But If you want to grow you have to move out of your comfort zone and embrace new ideas. This is a full training, so grab a pen and paper and settle in for an in-depth discussion of psychology and mindset and how it will be a game-changer for you.

How do you build a successful trading mindset? I share a full training in this episode of How To Trade It! Don’t miss this impactful episode! #stocks #trading #StockMarket #Investing #DayTrading #StockPicks #Mindset #Success Click To Tweet

 

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You’ll want to hear this episode if you are interested in…

  • [2:14] The most important skill that a trader can have is their mindset
  • [3:54] Key trading psychology lessons
  • [5:42] A successful trading mindset begins with optimism
  • [10:53] The power of self-belief and faith
  • [12:32] Fear leads to destruction
  • [15:26] Replace bad habits with good habits
  • [19:55] Embrace positive affirmations
  • [24:00] The power of visualization and positive thinking
  • [26:15] The importance of practicing gratitude

The Wikipedia definition of Mindset is that it is “A set of assumptions, methods, or notations held by one or more people or groups of people. A mindset may be so firmly established that it creates a powerful incentive within these people or groups to continue to adopt or accept prior behaviors, choices, or tools.

A successful trading mindset begins with optimism

Trading is a reflection of our own thought processes. We all have things that we’ve buried deep within our subconscious. If you’ve experienced something negative in the past, you probably subconsciously associate it with the future. To build a successful trading mindset, you actually have to reprogram your mind. Every single one of us has fallen into psychological traps. Your mind is with you 24/7, is constantly working, and is always functioning—even when you sleep.

Did you know that optimists always outperform pessimists in all areas of life? Optimism is visionary. Optimists look for the good in every situation. Success must be founded in hope and optimism. So you need to reprogram your mind and embrace being an optimist. It doesn’t mean everything will be easy. That’s not the kind of optimism we’re talking about. Optimism is looking brutally at the reality of the current situation and believing that you’re going to still have the results that you are believing for. You must look at and acknowledge the ugly truth—then change. Refuse to accept failure.

This makes sense intuitively because if you’re an optimist, you’re going to be more deeply engaged in your work and you’re going to look at the work that you’re doing as a meeting full step on your path to success. If you adopt an optimistic mindset, you adopt positive expectations about the future. More importantly, with this type of mindset, you believe you can effectively make decisions and take actions that will lead to your success.

The power of belief and faith

“If you believe you can or you can’t—you’re right.” – Henry Ford

“What a man thinks in his heart is what he is.” – Proverbs 23:7

What you believe about yourself and the future is CRITICAL. You need to believe in yourself and believe that you’ll become a successful trader. Start with belief, then take steps to make sure your belief becomes reality. Secondly, you must have faith. And faith always requires action. A vision without a plan is fantasy. When setbacks and trials come your way, don’t be surprised. Use your faith in your action steps to overcome them.

Giving in to fear leads to destruction

If you give in to gear, it sabotages every move you make. You have to realize that fear is usually ungrounded and unfounded. Think about the worst-case scenario. If it comes to fruition, what’s the first thing that could happen? Will you survive? Most likely, the answer is yes.

So how do you destroy fear? Realize that control is a lie. You cannot control certain areas of your life. The only thing you can control is yourself, your trading mindset, and your actions. Everything outside of this you cannot control. You cannot control the markets. You cannot control other people. If there’s a storm, if there’s a fire, if there’s an economic collapse—you cannot control those things. 

Why are you so afraid of something you have no control over? Fear makes you depressed and leads to performance issues. Fear equals failure. Fear is debilitating and you must fight it. Instead, focus on what you CAN control. How do you fight fear? You replace it with faith.

Replace bad habits with good habits

This is another practice that is essential to building a successful trading mindset. Replacing bad habits with good habits is a long process that will require some time. Your success depends on how badly you want to change and your willingness to take ownership of your choices. That begins by choosing to embrace perseverance, responsibility, and accountability.

You can’t blame other people for the decisions that you make. Blaming anyone will not help you reach success. With responsibility comes Victory. With responsibility comes authority. Replacing bad habits with good ones creates a feedback loop.

Accountability gives you feedback. You have to have outside feedback to sharpen you, to make you smarter, to make you understand where your flaws and faults are. Guess what? We all have flaws and faults. You need to realize you’ll feel much better when you develop a new positive habit. Every bad habit you replace builds confidence.

In order to develop a successful trading #mindset, you need to replace bad habits with good habits. How do you do that? Find out in this episode of How To Trade It! #stocks #trading #StockMarket #Investing #DayTrading #StockPicks #Mindset #Success Click To Tweet

 

Why you should embrace positive affirmations and visualizations

What we speak into existence becomes reality, so I guard my words carefully. Every time you speak negative things, you are reprogramming your mind and shaping your reality to bring those things into existence. You must learn to catch yourself every time you begin to speak negatively about yourself and your life.

Positive affirmations are useful because they help you restructure the dynamic of your brain, which will in turn help you better focus on your day to day trading plan. They redirect the flow of your thoughts toward a more positive outcome. The more that you flow in the right direction, the more positive results you’re going to have. What are some examples of positive affirmations?

  • I believe that I’m going to be a great trader.
  • I believe that I’m going to be a great husband.
  • I believe I’m going to be a great Dad.”
  • I’m a disciplined trader following my trading plan today.
  • I’m only going to trade my A+ setup.
  • I’m a professional trader and not a gambler.

I recommend spending actual time focusing on your thought processes. Before you enter a trading session, you need to visualize yourself being a successful trader and see yourself accomplishing those goals. Research has shown that visualization can give you up to 900% more stimulation in your brain than most people daily. This is going to be useful in building a successful mindset because you’ll be more productive.

Practice embracing a grateful heart

How do you become a more grateful person? How do you make it a part of your daily existence? I have a simple exercise for you. Sit down and write out a list of 10 things you have that you’re thankful for. Do it right now. Then, proclaim the things you’re grateful for and why—out loud. When I started to adopt a grateful mindset, I began to see things change.

Whatever you do, stifle negativity. Do not allow yourself to complain. Complaining is destructive. Gratitude is the exact opposite of complaining. Gratitude improves your physical and psychological health. It enhances your ability to be empathetic and compassionate. It reduces aggression. Gratitude also increases your mental capacity, abilities, and strength. Grateful people even sleep better and have improved self-esteem.

Remember: Don’t forget—in the face of adversity—to exercise persistence and be optimistic through the ups and downs. This will help you build positive habits that WILL contribute to success. Trading is a journey—it’s not a 100-meter sprint. Take one step at a time, work on your successful mindset, and the rest will follow.

If you practice embracing a grateful heart it will improve your #mindset. Learn more about how to BE a successful trader in this episode of How To Trade It! #stocks #trading #StockMarket #Investing #DayTrading #StockPicks #Mindset #Success Click To Tweet

 

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With over 50+ years of combined trading experience, Trading Strategy Guides offers trading guides and resources to educate traders in all walks of life and motivations. We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more. We provide content for over 100,000+ active followers and over 2,500+ members. Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow. 

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