28 May Trader Mindset: Do You Have What It Takes To Become A Great Trader?
What do you think about when I mention the word Trading?
Do you think about sitting in front of a screen for hours, developing your own trader mindset, looking at charts, studying indicators, losing money, managing your emotions, training your self-control, meditating, reading books about trading, reviewing your trades one by one and/or being obsessed by the markets?
Or is it something else?
Something similar to;
- making thousands of dollars a day
- firing that boss you can’t stand
- making your loved ones proud and being able to care for them
- getting the respect that you deserve
- buying that dream car
- buying your own house and a vacation house as well
- going on a vacation four times a year
- working at the beach with your laptop and a drink
- buying those new Gucci clothes
- buying a Rolex
- going to clubs each weekend end spending like you don’t care
- eating in restaurants all day and having enough cash you never have to worry about money again
So, what is your current trader mindset?
Please leave your honest answer in the comment section below (there isn’t any wrong answer).
Do you know what most people think?
When I ask this type of question I often get two kind of answers. The first is that people think trading is nothing more or less than gambling and the second type consists mostly about ”easy” money and living that good life.
I’m not going to explain why trading isn’t similar to gambling because I’ll do that in another post so let’s focus on the second type of answers.
So, a lot of people associate trading with easy money, luxury and ”the good life”. Although this is far from the right trader mindset, it’s totally understandable and I can’t blame them.
The reason why I can’t blame them is because the industry itself painted this picture. The internet is full of articles about:
- People who turned their life around by trading stocks
- Hedge fund managers who make billions per year
- Teenagers who trade stocks and make more money than their parents
- People who have no formal education but are earning more than surgeons
- Tv documentaries where you see average people making millions of dollars by ”sitting behind their monitor”.
And it doesn’t stop at those news articles.
Oh no, it goes much further! What about all the traders flashing their expensive cars, multi million dollar villa’s, Jewelry and thousands dollar vacations trying to inspire people?
Obviously I’m not saying that it’s wrong to do that because a little bit inspiration/motivation doesn’t hurt anyone but it’s also important to be realistic.
The appropriate trader mindset
The reality of life is that trading is one of the most difficult professions out there. Only 10 percent of people who try to become consistently profitable, succeed.
And I’m only talking about becoming profitable, I’m not talking about becoming a millionaire. The percentage of people who manage to achieve that will probably be much lower than 10%.
So yes, it’s possible to become wealthy trading stocks but it will probably be the most difficult, gut wrenching challenge of your life.
You will be inspired by the stars but will be crushed by reality.
There will be moments when you:
- Lose your hard-earned money, time after time
- Get the feeling you’re totally alone
- Feel you lack guidance
- Feel ridiculed by friends and foes who don’t believe in you
- Get frustrated because you seem to take one step ahead and two steps back
- Feel nothing is working
- Start to think that this trading ”stuff” isn’t for you.
- Will doubt yourself and everything you thought you knew about yourself
- Feel hopeless
- Don’t want to put in the time
- And ultimately want to quit
But if you don’t.
- See losing money as your trading tuition
- Look for people with the same dream (join trading communities)
- Find someone who can coach you
- Hang out with people who are supportive
- Train yourself to feel challenged instead of hopeless when you’re facing difficult situations
- Develop the trader mindset to keep studying/ practicing even when you feel nothing is working
- Write down WHY you want to trade and WHY trading fits your personality
- See all those setbacks as a way to grow into a new and better version of yourself.
- Tell yourself over and over; ”Hey Life, whatever challenge you throw at me, NOTHING will keep me from moving ahead, one step at the time.”
- Put in those hours, hour after hour, day after day, week after week, month after month
- And NEVER EVER allow yourself to quit.
Then you have the right trader mindset and the odds are in your favour.
I can’t guarantee that you will succeed if you have this trader mindset BUT I can guarantee that you will not succeed if you don’t.
If you want to become a great trader you should have/develop the appropriate trader mindset and that begins with being realistic.
Realize that trading is one of the most difficult professions out there and that only 10% of people who try, succeed.
The saying on wall street goes as follows: Trading is the most difficult way to make easy money.
That basically means that making ”easy” money with trading is only possible AFTER you’ve mastered this game. However mastering ”this game” is one of the most difficult ventures you’ll undertake.
Most people won’t be able to endure and will ultimately quit.
However if you have enough reasons for becoming a great trader, those reasons are strong enough, you put in the time and effort, seek the appropriate guidance and you don’t allow yourself to quit….
You have a very good change.