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5 ways to strengthen your trading mindset

By Edited Nov 23, 2013 0 0

To make a success trading it is very important that you have the right trading mindset and attitude but much more than that is the fact that you must have some mechanism for strengthening the mindset such that it does not fail you at critical moments in your trading career. Here are some means by which you can strengthen your mindset for a profitable trading.

1) Be willing at all times to take full accountability for your action during a trade. While most traders just go along with the majority in the market, the traders that make a huge success in the market follow their own mind set. While it is okay to listen to the gurus, you must ensure that the final decision you take is dependent on you and nobody else.

2) Do not overtrade. You can overtrade in two ways, either you are trading too frequently or you are trading too many shares. If you find yourself trading too frequently you must know that this is not a good thing as it causes you to experience undue stress levels even though you might be chasing high yield, this habit can lead to severe losses. Rather than trying to invest in every opportunity that comes your way, it better that you ensure that each trade meets the criteria that you have established previously in your plan. On the other hand if you find yourself trading in too many shares, discipline yourself to use a risk calculator to determine what the right position size is. The key is correct asset management such that your exposure is in the right proportion to your entire account

3) Take it easy on yourself. There is a tendency for you to be tough, too touch on yourself, perhaps in the name of taking responsibility for your action. There is indeed no need to weep over spilt milk at the same time you must definitely give room for positive self criticism. The point is that you should never be too hard on yourself, consider the fact that even the best of traders also make mistakes. Do not yell at yourself. The psychological trauma that inflict on yourself can be pretty difficult to overcome.

4) See yourself always as a winner. Therefore think like one always. When your thoughts are focused on winning you eventually would become a winner. Thoughts have a way of manifesting themselves in reality. The more you think the thoughts you desire and focus on them, they would become stronger in your subconscious and with increasing tendency manifest as actions , leading to habits and finally yielding the results you want.

5) Relax. Have fun and enjoy trading.

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