Why Mindset is More Important Than Strategy
Winning traders are eternal optimists. They must be to survive. Markets are constantly changing, and what works in one market may not work in another. You can’t complacently expect to perfect a trading strategy or method at a particular point in time and expect it to work forever.
But many traders hold unrealistic expectations. It’s common to hear even a seasoned trader complain, ‘It’s all a sham. There’s no way to make money in trading anymore. The amateurs have left, and there’s no way to take profits from professionals.’
This bleak outlook can shake your confidence and make you feel like throwing in the towel and investing in a mutual fund. But if you want to master the markets and take home huge profits, you can’t let pessimists sway you.
Don’t catch their bad mood. Stay optimistic, hone your skills, and remain ahead of the crowd.
The Importance of Adaptability
Seasoned traders have seen markets change over and over. They’ll warn you that to stay profitable, it’s necessary to continually search for new ways to trade profitably. This fact of trading can provide solace when you hear your friends complain about how ‘it’s all changed’ and there’s no longer a viable way to make a profit.
Sure, it’s not going to be easy, but it’s always possible. Acknowledging that trading is hard can actually soothe you.
Overcoming Emotional Barriers
If you know that it’s not your fault that market conditions change, then there’s no reason to feel pessimistic and beat yourself up. It’s not your fault. You didn’t do anything wrong. Change is merely the nature of the beast.
Your job is to avoid giving in to pessimism. Instead, you must continually pick yourself up after being thrown down and courageously face market challenges with a fighting spirit.
The Power of Emotional Control
An optimistic attitude alone isn’t going to guarantee success, but it’s an essential prerequisite for continuing to stay profitable. To stay on top, you’re going to have to think creatively and you might have to change the way you’ve been doing things.
Maybe you can’t make as much profit as you were used to making on merely a few trades. Perhaps, you have to make more trades or just expect less per trade. Maybe you have to move into new sectors or into trading commodities or bonds.
Again, it’s not going to be simple, but with effort and practice, you can learn to adapt your trading style to new circumstances, instead of catching the pessimism that is rampant when the majority of traders are losing.
Conclusion
So when you hear a novice or old-timer complain, ‘it’s impossible to make a profit,’ don’t let it shake your resolve. Don’t catch a bad mood. Everyone is different. You’re different from other traders. You have your own resources and your own style.
Maybe your friend with a bad attitude is right. Maybe he or she can’t trade the markets anymore. Maybe his or her account is too big or too small. Whatever the issue is, don’t make it your problem. Just go your own merry way and keep searching for a new set of tools that will make you profitable. They are out there. All you have to do is persistently search until you find them.
