Trading requires, the right mindset for success. You must be confident in your decisions because they are based on cause and effect, not on emotions or opinion. Negative people who are unsure of themselves are not successful in any field. You need faith in yourself and your methods to be able to persevere and not give up before reaching success.
• Having unrealistic expectations in trading will lead to unhappiness and failure, expecting 100% return on capital etc. You have to set realistic expectations so you do not get discouraged easily and quit in any of these areas. You have to be satisfied that the results are worth your effort over the long term. You need to understand what to expect before you begin trading.
• You can risk too much and lose it all in your trading. You have to measure the potential cost of every action. One big trade with too much risk can cost you all your capital.
• Trading is similar: methods which turn a consistent and long-term profit are essential for success.
• The best way to manage trading stress is to increase what you can handle step by step so that you grow into new circumstances. Do not trade in multiple lots once you do a successful trade go slow and steady Another way to manage stress is to avoid actions which get you into situations you are uncomfortable with.
• Patience can pay big dividends in life. Patience is not inaction; it is simply knowing what you are looking for and taking action at the right time. Whether you are waiting for the right trade setup , patience can protect you from irrational emotions and feelings. Wait for what you want, and when it is there go get it.
• Sit down when you are calm and rational and jot down goals to pursue. This will provide you with a map when life circumstances bring out your fears, greed, and other destructive emotions.In trading, traders with written plans accomplish much more than traders with no plans.
• Education does not end in school. To be successful in trading we must never stop learning. The market and the world are constantly advancing and changing and the only way to keep up is to keep learning.