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9 Trading Mindset Tips You Need To Know for Success

Trading Mindset Tips
In this post we will go deep into trading psychology and the trader mindset and provide 9 essential tips for success.

In this post we will go deep into trading psychology and the trader mindset and provide 9 essential tips for success.

To be honest learning the strategies and techniques is the easy part, compared to our mindset and developing our self-control, which can be much more difficult. 

But don’t worry as we provide you with the best tips to develop the right trading mindset needed for success.

Day trading has proven to be the best teacher for me in this and helps me learn daily about changing my mindset.

And in my opinion developing this strong mindset will not only help you in your trading journey, but it’ll also help you in becoming a better person. From guilt to depression and revenge trading, here are some of the best tips to improve your trading psychology and trader mindset.

And in addition to building the correct mindset and psychology to be a successful trader, there is also the all important technical aspect of mastering trading fundamentals and market movements.

But in this post we cover psychology and mindset directly.

The Most Important Trading Psychology:

When it comes to trading psychology and developing the trading mindset, the most important question is; ‘What is the difference between Lack Mentality and Abundant Mentality when it comes to trading?’.

1. Lack Mentality: with this mentality you feel that there will not be many good trades and take half-assed ones which often result in losses. And this can put you in a ‘lack mentality cycle’ which only serves to amplify the feelings of lack and fear in you.

2. ABUNDANT mentality: an Abundance mentality is the mindset you YOU MUST OWN and you should also REMEMBER: 

There is always another great trade around the corner. Always. 

It might not happen in the next few minutes or even an hour, but trust me, it is coming. If you take a good trade, and it fails which is normal in trading, remember there is always a good trade coming which will take you back to the green area. TRUST THIS.

As long as you stick to the trading plan and the strategy. You will see that there are always more GOOD trades coming, and you will win more than you lose!

At this stage of your trading journey it’s possible you don’t understand what a trading plan or strategy is yet (I will help you with that) just start believing and knowing that there are always good trades coming and if you make the right decisions, you will be profitable!

In trading and life, an abundant mindset will always win in everything you do.

This is so important when it comes to developing a strong trading mindset. Because it’s really hard to not put yourself into a losing position. This can be emotionally tiring. We all know that a large loss is devastating, not only financially but emotionally too.

9 trader mindset tips you need to know
Inexperienced traders can be a victim of their own emotions, here is when the trading mindset and solid trading psychology comes to play.

A loss can make you feel awfully bad. But how you react to a loss is even more important than the loss itself. 

Inexperienced traders can be a victim of their own emotions, here is when the trading mindset and solid trading psychology comes to play.

So what are the most common trading psychological errors, a wrong trading mindset can cause?

It can cause you to Withdraw from trading. Yeah, let’s face it. After a loss it is easy to quit things, you don’t want to go through losing again, so it’s easier to quit. Your brain will try to “protect you” from things that make you feel bad. And in the case of day trading this usually means that a trader will withdraw from trading altogether.

Another consequence or outcome is Revenge Trading. This is one of the most awful things a trader can do after a loss. Revenge leaves you blind and a blind trade, executed without a strategy and plan is a LOSS for sure. Your mind will try to tempt you to compensate for the loss with a quick win. But you should avoid revenge trading at all costs.

None of those reactions are good. That’s why I wrote this post to give you 7-day trading psychology tips that will help you develop the right trader mindset and set you up for success. 

Stop your destructive self right now!

Related Read: 22 Powerful Trading Affirmations to Start Your Day

9 Day Trading Psychology Tips for a Better Trader Mindset

1. Spot the “why” and identify what’s causing your trading losses

Trading can get emotional. It’s always important to check your trades. Compare your wins with the losses and you are sure to identify areas where you can improve on and many other important lessons.

Do a breakdown of your strategy to see if you’re doing everything right. Even a little deviation from your strategy can make a trade go wrong. Some trades result in a loss due to the lack of discipline

2. Successful traders learn from their mistakes

Firstly avoid the two enemies of a trading loss (i) withdraw from trading and (ii) revenge trading. Get in the mindset of always learning from your trades, both wins and losses. Every trader should treat their losses as an opportunity to learn about what they did wrong. This is the best way to improve your trading skills and trading success.

3. Control your losses

I can’t stress enough how important it is to know how to lose. A good way to control your losses is to set a rule, “don’t lose more on a bad day than what you earn on a winning day”.

Here’s an example. Don’t worry if your average win per day is 100$ you shouldn’t be losing more than that on a bad day. Learn how to minimize the risk.

Sound familiar? It’s very similar to the age-old saying;  “Don’t spend more than what you earn”.

4. Risk Management is ‘King’ in trading

Sound risk management will be the pillar of any trading strategy. A good risk management plan can make a big difference when it comes to trading success. And obviously, a bad risk management plan can erase your capital.


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5. Set your Stop-Loss level

Setting a stop-loss every single time you enter a trade will separate the successful trader from the unsuccessful trader. Whether you’re using it to prevent big losses or to lock in profits. Every trader needs to learn to always, always set stop-losses. This will go a long way in helping you improve your trader mindset.

Think of it like your health insurance, it’s something you need, but you hope you never need to use. Having this back up can give you the confidence you need to forge ahead with your trading journey and not quit.

6. Don’t get anxious about a trade

You should always keep your mind calm. Remember there’s always a good trade opportunity right around the next corner. Avoid getting late into a trade just because you don’t want to lose an opportunity. And always avoid FOMO (Fear of Missing Out). Another opportunity is always just around the corner.

There are more than 200 trading days in a year, don’t worry about just one. More will come. Don’t rush it.

After a big loss, there’s a huge list of mental and emotional conditions that hit traders. Anger, hate, despair, and a lot more. It’s hard to trade with a clear mind if you can’t practice emotional control. Don’t let your emotions overcome your trade. Control your impulses.

7. Embrace your decisions

If you make a good trade you’ll feel pretty good about yourself, right? That’s what most people do, and it’s not bad. You should do the same when you make a trading loss. Accept your decision and don’t blame anyone else. Don’t hide it and don’t push it aside.

In life, there’s always an excuse for almost everything, the same as in trading. We must accept the risks that are involved as well as the consequences.

use these trader mindset tips to guarantee your success
You should always keep your mind calm. Remember there’s always a good trade opportunity right around the next corner.

8. Accept that you will lose some trades

No trader can win 100% of the time. Even the best traders in the world who are hugely profitable have a winning percentage of 50% (some even closer to 30-40%) and you can still be profitable even if you lose more times than you win if you are using the correct Risk to Reward ratio.

So accept that you WILL lose and learn from the lesson and keep moving ahead. 

9. Sometimes you need to step away

This is NOT the same as withdrawing from trading as discussed earlier which is a negative consequence of having the wrong mindset.

Instead this is probably best when you feel a bout of revenge trading coming on and you quickly want to make up for losses – which never works out well.

If you want to stay in the trading game long-term then knowing when to step away and take a break is extremely important. You will avoid burn out and become much more consistent in the long run.

Conclusion on Trading Psychology and Trader Mindset

A big loss or a losing streak can lead you to doubt and this will lead to other trading problems that come about from a build up of doubt and lack of confidence. 

Other problems that can come about include holding positions for too long and getting into more trades than you know you should. And getting out of trades too quickly is another common problem that can come up due to a lack of confidence and too much doubt in your trading ability.

And we must not forget about the worst of all. Skipping a good trade opportunity because you’re afraid of losing.

With all this to settle down you should now prepare yourself to improve your trading psychology and trading mindset. And the 9 mindset tips provided in this post will help you to do just that.

Don’t be afraid to step away and stop trading for a while if you feel too overwhelmed. The stock market is not going anywhere.

Day Trading for Beginners

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Let`s get to know each other. You can learn more about my journey and how I started here.

After that, if you have any questions you can always ask me at traderchick.com. Come to my Facebook group and introduce yourself, let me know your experience with trading.

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Trading Psychology - The Trader's Mindset