Traders own their business and set its direction and as leaders they must know how to run their business which is essential to their success, frankly, attitude and your trading mindset can spell your success or failure.
Statistically, 90% of traders lose money.
The trading mindset challenge is how to face up to the challenge of making it among th 10% who make it big in trading.
One way is to understand leadership principles and see how you are applying them to your own trading business.
First, you must know why you are in the trading business, what attracted you to it, what were your motivations and will you be seriously focusing your undivided attention to making it succeed?
Many say that it is money, excitement, challenge, power and a lot of other things.
Imagine you got all of the things you wanted to get out of your trading business:
Setting your own trading mindset will help you get along the way, especially when your attitude comes into the picture.
What is your degree of discipline, how you tend to react to certain conditions and circumstances, who focused are you towards reaching your goals, do you give up easily, etc.?
Managing your energy, time and effort is one sure way to establish a habit and creating a discipline that you hope to use in shaping the path of your trading venture.
One good principle to follow is the 80/20 rule, where 20% of your efforts get 80% of your desired results.
You can focus your energy on the efforts that get you the results, or let yourself get distracted. If you allow yourself to get distracted, you are very busy, however you do not produce the result that you want in the time frame that you want.
Perception is also another useful tool in establishing the right attitude for your trading mindset.
We face challenges and difficulties throughout our trading business, but this is just a normal fact of trading.
Question is, how do you deal with these setbacks?
If you consider your losses as being the cost of doing business and an overhead for your business, then it is easier to accept the fact and move on, taking into consideration that your loss is a way for you to learn from it and avoid it from occurring another time.
It is important to realize that it is about your perception and how you view it. Losing is not an option, it is a fact of life that one has to deal with and how you perceive it whill make you reshape your path towards your trading mindset.
Of course, fear has a way of making one reluctant about a certain decision, but take advantage of the fear in making calculated risks and having other options if one trading decision does not work to your advantage.
Take ownership of your trading business, make your decisions work for you and not let others do it for you.
Trading is a stiff competitive market and a hard truth to it is that if there are winners, there definitely has to be losers, otherwise it cannot be considered a market.
Many of us put more value in others’ opinions than our own and we tend to want to be safe than sorry and if something goes wrong, we have someone else to blame, as long as it is not us.
If we follow others, we do not have to take responsibility for our results. We can blame the advice, the markets or anything else, but the sign of true leadership and the ideal trading mindset is that you should not fear mistakes, but on how to handle the consequences and eventually move on.
One of the signs of great leaders is not that they do not make mistakes. It is that they handle the consequences and move on.
Remember that the most important thing to establishing that trading mindset is not only to make decisions, but also how to live with the consequences and how to take things in stride.
Your attitude and trading mindset, if done for the right reasons, conditions and goals, will definitely spell out your advantage over others.