As traders, we have to condition our thoughts just as an athlete conditions his body for a competition. Trading psychology books tell us that trading is 90% psychological. If there is any truth to this, we must pay attention if we want to succeed.
Since I began my journey of trading I have personally discovered that it is all about what is going on in my head. I coach traders each month and help them overcome issues that plague them. In my trading room I give out plays and I have seen some of my traders take the same entry as I took, however, end up with a loss instead of a gain. I was puzzled after seeing this occur in a few of my traders until I worked with them personally and helped them unravel their mindset.
WHAT IS YOUR OUTLOOK?
One of the main mindsets I see traders struggle with is coming from a place of scarcity. If you start trading from a viewpoint of, “I don’t have enough” or “this is all I have,” you will begin to reproduce those thoughts in your trading.
You must start your trading journey from a place of “abundance” or the belief that “there is more than enough.” These two mindsets are polar opposites. The poverty mindset will set you up for a trading career of pain and loss.
For example, if you operate in the poverty mindset when you take a trade if you get slightly positive in the trade, you will take all your money and exit missing a bigger move and profit.
Trading from a place of abundance, however, is seeing the stock market as a positive place that you can exchange shares for profits instead of thinking “this market is here to take all my money.”
TODAY’S CHALLENGE
I want to challenge you today to review your mindset and where are you positioned…poverty and lack of or abundance and the belief that there is more than enough to go around. In coaching my traders with this simple principle of mindset, I have helped them make leaps and bounds in their careers.
I have often heard, “what you think about you bring about.” If history is correct, Solomon who was one of the richest kings on earth (the Warren Buffet of the ancient world) said, “For as man thinks (mindset) in his heart, so is he.” Proverbs 23:7
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