How to become a profitable trader has far more to do with mindset
than with a specific trading strategy. In fact, no trading strategy can
be profitable if a trader has the wrong mindset.
Today we will discuss How traders can optimize their trading mindset
Trading Goals
This
really is the kind of principle that should play a role in every major
endeavor you undertake. When you set out on a new path, it helps to set
clear, definable goals to guide you.
If you set no goals at all, or vague goals, you don't have anything to benchmark against.
Clear goals help you stay the course on the road to success. Make
Realistic Goals not unrealistic goals like doubling trading capital in a
month. Read more on
Setting Trading Goals
Realism
This
second principle goes hand in hand with the first. Many beginning
traders do set goals, only they're not very realistic. Setting the goal
of making 10,00,000 annual profit with a trading capital of 1,00,000 is
very enthusiastic, ambitious and optimistic - all very likable qualities
- but these goals are mission impossibles.
And since failing
to reach a goal is very demotivating, there's really no reason to set
goals that are ridiculously hard to achieve.
To make sure you set realistic trading goals, you should answer the following questions for yourself:
•
How much money can you trade ? Your financial goal is partially based on the amount you have available for trading.
•
How much time can you devote
