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Mindset of a Profitable Trader

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Just as important as controlling risk (money management), a trader also needs to have confident in oneself. He needs to know that even with a profitable trading system, one could also have numerous losses in a row. This is usually referred to as drawdown. Being aware of this will help to prepare you to control risk and not abandon a good trading system when drawdown occurs.

This self confidence is an important part of a trader's mindset, one that you must developed in order to be consistently profitable. When you see that your trading capital is growing consistently month after month, you should know you have sucessfully developed the mindset of a successful trader.

Acquiring the trader’s mindset takes patience, time and experience. Here is a brief list of traits you should developed:

Sense of calm when trading
Ability to focus on the present reality and not how you would like it to be
Disregarding which way the market breaks or moves
The feeling that money is not the point of focus
Always looking to improve skills and strategies
Open-minded, keeping opinions to a minimum
Absence of anger
Enjoyment of the process
Trading one chosen approach or system consistently
Telling oneself that you cannot control the market but you can control your own decisions
No feeling of being victimized by the markets
Taking full responsibility for all trading results and willing to learn from mistakes.
Do not rush into trades if you are not confident; reminding oneself that there is always next day to trade

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jest1081

|165.21.7.xxx |2007-03-22 11:02:28

Hey Wil,

This is so right! drawdown is inevitable. Only proper MM can negate
this.

Anyway, kudos on the newly found confidence! I like your system.

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FXOperator

|2007-03-22 11:17:26

Hey jest!

Thanks and nice to hear from you again. Yeah right, perseverance
and always learn from mistakes is the key to becoming a better trader.

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darius

|2007-06-16 23:57:49

Yup, do agree, test your trading system and once you have good confidence in
more winning trades than losing ones, stick to it, keep it simple. Oh yes, money
management is important too! For me I'm using Guppy's GMMA

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