1. Beliefs of Successful Traders
- The markets provide a constant stream of opportunities.
- If I miss an opportunity, another will come along.
- If my position is stopped out, the hypothesis that got me into the trade was incorrect.
- I take one trade at a time, and stay in the moment with it.
- I strive for excellence, not perfection.
- I maximize profits by losing small.
- I am not my trade.
- I take complete responsibility for my thoughts, feelings and actions in the markets.
2. Beliefs of Unsuccessful Traders
- I must be trading something all the time
- If I lose on a trade, I feel angry, frustrated, sad or sick. If I win on a trade, I am a happy camper.
- If I don’t get on board with the hot tip of the day, I will miss out.
- The markets are out to get me.
- I am unwilling to take the stop-out, so I am turning this trade into an investment.
- If I just keep studying and looking and reading, I will find the magical formula/indicator/guru to lead me to riches.
- Everything has to be perfect for me to get into a trade
- If I win, I was skillful. If I lose, I was unlucky.
3. Cut your losses short and let your winners run.
It is only through daily assessment of beliefs with radical honesty that a trader grows, develops and thrives. Diligent examination of beliefs and the courage to change them is an ongoing challenge that must be conquered if the trader is to move to higher levels of success.
Believe nothing just because a so-called wise person said it. Believe nothing just because a belief is generally held. Believe nothing just because it is said in ancient books. Believe nothing just because it is said to be of divine origin. Believe nothing just because someone else believes it….. Buddha
Thanks and Good Trading!