A Trader’s Mindset Weekend Thoughts Outloud

“Nothing truly changes until your mind changes “Dr. Myles Munroe

As we have previously discussed the mindset is your key to success almost in everything in life and Trading is all about a healthy mindset.

Every Moment in the Stock Market is unique!

What does this mean?

It means if you are falling into series of losses and your capital is drying out, maybe it’s about time to take a step back and re-evaluate your mindset since the stock market will give us plenty of opportunity in making money in either direction there no excuse for you NOT to bank on those opportunities 70–80% of the times with consistent plan that works for you.

If you found yourself in cycles of losing and capital is evaporating fast most likely you are in a Trading cycle known as “Revenge Trading” which is typical cycles traders go through after major loss in hope to make their capital back fast and most of the time it ends up with bigger losses and most importantly loss of self-confidence, if you find your self-caught in this cycle make sure to stop immediately and follow the below steps to help you gain your grove back in Trading:

1-Take long weekend off

2-Following a day of rest, pull out all the losing trades and markdown with no prejudice what the main common reason for the loss?

3- Ask yourself it’s for you to take the same trade again what would you have done differently knowing what you know now? Write down those thoughts on a piece of paper and leave it somewhere you can visualize it clearly (The most common answer will be, Risk management).

4-Go back to basics of trading:

1-Edge

2-Plan

3-Money management

The above will give you a clear mindset to a healthy come back.

The above was food for thought.

I hope you found this article helpful to stay tuned for more.

Yours truly,

A trader’s mindset