When trading, what does everyone look for?
How quick can they buy a nicer car?
The list is endless but what if we said the one thing we should look for is LONGEVITY in the markets.
In order to achieve this and NOT be one of the 90% who blow their account within 90 days of opening their account you have to focus on your trading plan not the end goal.
You have to remember the money coming from trading is simply a by product of your success in the markets. Your account will grow, and continue to increase the more knowledge you gain, experience you obtain and time you have trading the financial markets.
True success as a trader will depend on two things – mindset and psychology – how you think about the markets, react to winning & losing trades and how you keep the discipline needed and stick to your trading plan.
There are a few traps that will keep testing you throughout your trading journey that you need to be aware of:
- Fear of missing out (FOMO)
As a new trader this could be the biggest factor to keep control of. At the start of your journey, placing too many trades is one of the most common mistakes you could make. There is nothing worse than not placing a trade you “thought” may win then hearing about all the people who placed that same trade, are in profit and then jumping into the market too late. If this happens, remember, there is always another opportunity, the markets are not going away and do keep in mind your initial analysis was correct what you have to master is the confidence to believe in your strategy and your trading plan.
- Increasing Risk
Always, always manage your risk correctly on EVERY single trade. The moment you lose control over this is the moment you start to allow emotion to creep in and lose your discipline. Do not chase the big wins as inevitably you will blow your account.
- Not having a trading plan
Like with any business, successful project or even when learning a skill. Everything we have taught has a structure and plan that takes you to the ultimate goal. By not having a trading plan you are not building a systematic approach. This should include everything from the time you wake up (for those intra-day trading), rules of your strategy, journal of your trades and more. Teaching your mind to revert to you plan daily will make this a HABIT rather than serving as a reminder that you could forget. Keep repeating the process till it sticks.
The psychology of trading is not as complex as some people make out or as it sounds. Focus on running your trading account as a business or as if it is your family’s money – you wouldn’t take unnecessary risks if the money is not yours so do not do it with our own money.
Now, we can never guarantee that everyone will make a success of this, it is down to the individual to implement what we teach. We will, however promise you that you will have a much a longer trading life and more fruitful journey if you listen to what we have to show and tell you.