What is a trading mindset? Being a trader isn’t just about coming up with better strategies and doing more research. It’s also about having a winning mindset. According to a lot of studies of traders, what separates a winner from a loser:
- It’s not that successful traders come up with better trading strategies.
- It’s not that the best traders are smarter.
- In fact, it isn’t that the best traders do better market analysis.
What makes a good trader and a bad trader different is how they think about things. Comparison between Disciplined Trader and Emotional Trader is given below:
|No||Disciplined Traders||Emotional Traders|
|1||Trade a defined trading plan.||Trade based on emotions.|
|2||Manage risk.||The more confident they are the bigger the trade.|
|3||Exit a trade when wrong.||Hold a losing trade to prove they are right.|
|4||Exit based on predetermined stop.||Exit due to fear.|
|5||Enter based on a set up.||Enter based on greed.|
|6||Do the homework.||Believe they are special.|
|7||Trade based on price action.||Trade based on their opinions.|
|8||Only want to make money.||Want to prove something to some one.|
|9||Trade with focus and calm.||Trade with stress and strong emotions,|
|10||Lose and move on to the next trade.||Blame someone after a losing trade.|
|11||No one trade means much.||Over celebrate wins and get depressed over losses.|
|12||Have a steady state of mind.||Have huge swings in moods.|
Also ReadMy 10 Trading Resolutions for 2022
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