In the trading world, aside from the technical side of things ,if you simply dont have the correct mindset to trade you will not be successful. Statistically only about 1-3% of people are profitable traders. How do the 1% consistently profit while the rest of the trading world is struggling? We must first understand that the markets are based off fear and greed. These two human emotions are the most dominant ones we have hardest to get in control of. This is what seperates the amateurs from the pros. The pros understand that emotional intellihgence is extremely important because we have no control of which way the markets go.

Winning Mindset

When becoming a pro trader it isnt just about finding the million dollar trading strategy or being able to master all of the trading patterns, it is about developing a warrior mindset.

When most traders start out trading, they think its about finding the perfect trading indicators to help them dicate perfect timing on when the market will go up or down. The simple fact is the market will move however it wants to move. Do they move in certain patterns? Yes, but that doesnt mean it will always work. This is where the amateur trader has a hard time with. Its hard for them to accept that these things are in place only to give you more of an advantage on a trade.

Winning Starts Within

Three major characteristics that seperate a pro trader from a amateur, is: Self-confidence, patience, and discipline. All traders that are profitable show a very high Self-confidence when they are placing there trades. They understand that the trade they are putting on isnt guranteed. The thought of them losing the trade dosent cross there mind. If they do experience a losing trade, they shrug it off and focus on the next trade. With the amateur trader, after experiencing a losing trade negative thoughts start to come to mind. This losing trade rattles their confident, so it stops them from taking the next trade. All pro traders are extremely patient. They know that waiting on a candle close gives them the confirmation they need. When approaching a cerain level most amateur traders just blindly getting into a trading position when it comes to a support or resistance. Lastly pro traders are very disciplined. They are very strict on risk management in their trading. They understand that in order to be a successful trader you have to risk something. They want to aim for a 3:1 risk to reward ratio. what this means is your wins will be 3x more than your small loss

Mark Douglas

Mark Douglas is a well known trading psychologist. He wrote the book trading in the zone. In this video he goes over the 10 main principles that will help your trading.