Bad Trader v's Successful Trader

BELIEFS

Bad Trader:

Money is important
It's bad to loose in the markets
It a battle, war, sea or animal and serious
No need to mentally rehearse each trade
I've lost before I start

Most people approach trading to make money and that is the primary reason they lose. Because money is so important, they have trouble taking losses and letting profits run.

Successful Trader:

Money is not important
it's ok to loose in the markets
Trading is just a game
Mentally rehearsing each trade is important 4 success
I've won before I start

In contrast, when you think trading is a game and play by certain rules, then it becomes easier to follow the rule of cut losses and run profits. In addition, because of mental rehearsal and extensive planning, top traders have already gone through all the trail and error in their mind before they begin. As a result, they know they are going to win in the long run, and it makes little set backs easier to deal with.

EMOTIONAL CONTROL

Bad Trader: No emotional control
Successful Trader: Strong emotional control

DISCIPLINE

Bad Trader: Lack of discipline
Successful Trader: Strong discipline

PATIENCE

Bad Trader: Lack of patience
Successful Trader: Extremely patient

RISK ATTITUDE

Bad Trader: Run losses Cut profits
Successful Trader: Cut Losses Run Profits

FAILURE ATTITUDE

Bad Trader: You can fail
Successful Trader: No such thing, just leant something
TRADING EMOTION

Bad Trader: Fear and greed
Successful Trader: Calm / confident/ detached from trading/ still
STRESS ATTITUDE

Bad Trader: Because failure exist they burn energy trading on stress = follows crowd mentality & irrational choices
Successful Trader: No such thing as failure own mind rational choices

LOOSING ATTITUDE

Bad Trader: Loosing attitude, anxious about losses, blames others for mistakes so has to get them to change Must win now
Successful Trader: Calm about losses, blames self for mistakes so change behaviour now, can lose now as will win in the future

TRADING MENTAL STATE

Bad Trader: Confused, scared, fear and greed trading state
Successful Trader: Strong peak appropriate trading state

MARKET KNOWLEDGE

Bad Trader: Weak knowledge Weak understanding of how it works
Successful Trader: Strong knowledge Strong understanding of how it works

MODEL OF TRADING

Bad Trader: Not tested model
Successful Trader: Test their model before applying

COMMITMENT TO SUCCESS

Bad Trader: Not committed to being successful
Successful Trader: Committed to being successful

COMMITMENT TO TRADING

Bad Trader: Not committed to trading
Successful Trader: Committed to trading

EXCITEMENT

Bad Trader: Experiences excitement when trades go well
Successful Trader: No excitement from trading, excitement from other areas of life

PERSONAL CONFLICTS

Bad Trader: Many personal internal conflicts with trading
Successful Trader: No personal conflicts with trading. Identities aligned.

DECISIONS

Bad Trader: Bad decisions - long and complicated When they can't decide what to do they follow the crowd
Successful Trader: Good decision - short and quick Calm and decisive

PERSONAL ENERGY

Bad Trader: Tired
Successful Trader: Energised