TRADING MINDSET - 3 LESSONS YOU MUST LEARN TO BECOME A SUCCESSFUL TRADER

GOOD EVENING STEEMIT,

A career as a trader, either in the prop trading space or out on your own, is one of the hardest paths you can take. It is however, one of the most personally fulfilling and financially rewarding paths, leading you to places that you never imagined even existing.

You will learn more trading for yourself than in any job you have, or will have and whether you make it in the end or not, you'll look back on your time as a trader as some of the most rewarding years of your life.

Here I discuss the top 3 lessons that I truly believe you must learn to become a successful trader. They may seem slightly controversial and even downright ridiculous to you on the surface, but all I can do is encourage you to take them on board throughout your journey and you will see in the end.

1. You only learn when you lose money

You have to feel pain in order to progress. When you feel it, you wont want to feel it again so you either quit... or learn.

This is something that I always tell new traders who ask for advice and I always get the same response. I'm told that if I want them to lose money, then I obviously don't want to help. Of course this couldn't be farther from the truth.

The only way for you to learn is to experience the pain of losing money. This is why governments tax things they want you to use less of and why demo trading doesn't work. You just don't care until it hits you where it matters and the only place that matters is your bank balance. Harsh, but true.

The reality of trading means that you're going to make mistakes and lose money as a result. Heck, this can still be said for professional traders who have decades of experience. Of course new traders are going to experience losses. Take them and embrace them.

This leads into lesson number 2 nicely.

2. Take more losses than winners

Lots of little losses and the odd big winner, is a much better strategy than taking lots of small winners and the odd big loss.

Once again, when I tell traders asking me for advice to take more losses than winners, they think I'm equally as mental. You see, every single piece of trading advice written for new traders will tell you to keep your winning percentage high. On paper, this sounds like a good idea, but trading isn't done on paper. It's done on your live account which is linked to your bank balance.

You're going to take losses and you should be taking a lot of them. Taking small losses over and over again at the first sign you're wrong, will put you in a better long term position than letting the trade develop, or whatever other slogan you might read. Your strategy has already let the trade develop, you're wrong, so get the fuck out of the trade.

The other side of the coin of course, is not just taking winners, but taking BIG winners. Always look to add into your winners and make sure that when you are right, you capitalise. The fact that you can turn winners into BIG winners is your edge. It's what turns you into the house rather than the punter.

3. You can't trade anyone else's strategy

Innovate or die trying. You can never copy someone else's trading entry for entry so do things your way.

Human beings are inherently lazy creatures. They want to take the easy path in life and when it comes to trading, it's no different. New traders want to find a successful trader and copy them. Not learn from them, but copy them trade for trade.

The reality is, this just doesn't work. You will never be able to trade a strategy exactly the same way as someone else because no successful strategy can be completely automated. You can have certain rules, but you still have to have that human element in your trading to cut losers or skip certain entries.

Embrace elements of a successful traders' strategy sure, but adapt and make it your own. It's the only way that you're going to become a consistently profitable trader.

Instead of hiding from your failures, you have to embrace them. When you take a loss, you have to own it like every winner you close. Successful trading isn't about being right more often than not, it's about making money. Nothing more, nothing less.

Don't let failure or stress overcome you or your self-confidence. Instead, use it as the driver to get where you need to be.

Best of probabilities to you.

Peace ✌🏻.

---

Please leave a comment with your ideas or just share a chart.

Blogging about markets is all about sharing ideas and making us see all possible angles. I look forward to having you follow along and reading what you throw at me.

Twitter: @forexbrokr
Instagram: @forexbrokr
Website: www.forexbrokr.com