Risk Warning: Trading financial products carry a high degree of risk and are not suitable for all investors. Losses can exceed the initial investment. Please ensure you fully understand the risks and take appropriate care to manage your risk.
How to achieve an Appropriate Trading Mindset 101
Appropriate Trading mindset is so important. It is one of the important aspects of trading. But many traders don’t know and aware of this fact. If you want to be successful as a trader, then you need to have an appropriate trading mindset. My little effort is to show you what you should do as a trader to achieve an appropriate trading mindset. I promise you that after reading this article you will get some valuable techniques which should lead you to the success.
As a trader, if you want to make money from online by trading, then you can not only think about profit as risk is involved too in trading! Many traders always just think about profit on investment, that’s why ‘Losing Steak’ occurs frequently and in the result, they mostly lose their own money. That’s why you have to achieve an appropriate trading mindset. I want you to be successful. It feels always bad when people lose their money just because of not applying trading knowledge and common sense.
Every time when you will trade, ask yourself the following questions :
- Which way will this market trend over the several months?
- Am I going to buy or sell this market?
- How many units or lots will I trade?
- How much am I prepared to risk if I am wrong?
- What is my profit objective?
- Where will I enter the market?
- What types of an order will I use?
- Where will I place my protective stop?
By answering these questions honestly by yourself, it is expected by you to make a significant trading decision. You can not eliminate emotion from trading. But when you will have good preparation, then you can do much better. Preparation is the key.
Howard Marks says, ”You can not predict, you can prepare”
Usain Bolt says, ”Listen, work is done behind the scene. Competition is an easy part!”
”Don’t Be The Same, Always Try To Improve Yourself. If You Don’t Do Anything Or If You Do The Same Thing, Then You Will Stay The Same…!!! So, Staying The Same Mean ”Going Backward”…!!!! Because, Always Remember That The Other People Are Also Working Hard And Trying To Improve Themselves” – Roger Federer
Now you know about the trading process and preparation of trading. To achieve success in trading you can apply an important trick and that is knowing and understanding the facts of what cause trading failure. If you know the facts and if you always stay aware of those facts, then it’s expected not to do the same mistake again and again. Eventually, you will be in the lucrative side.
Trading is all about possibilities. You have to understand and admit this truth before investing in any financial market. Trading is a skill. So develop your trading skill.
Peter Lynch says, ”Investing is fun, exciting and dangerous if you don’t do any work. Your investor’s edge is not something you get from Wall Street experts. It’s something you already have. You can outperform the experts if you use your edge”
‘No Discipline and Unrealistic Expectations are the top reasons behind the trader’s failure” – Charlie Burton
”Fundamental Analysis + Technical Analysis + Appropriate Mindset – That Should Lead to a Success in Trading” – LEX VAN DAM, who is considered as the Most Successful Hedge Fund Manager in the UK.
This is how you should trade. You have to know when to stand aside from the market and when to be active and when to be aggressive…!!! Spend 90% of your time on doing research. Never be Afraid of Buying at Low and Selling at High…!!! This is the simplest and the most important tips for trading in any financial market. As a trader, you must have a clear goal, vision and proper trading plan to become successful..!!! Learn ‘4M’ Of Trading. Come, Learn & Rise
Mark Cuban says, ”Know what you know and know what you don’t know, but you need to know your business better than anybody”
Warren Buffett says, ”The stock market is designed to transfer money from the “active” to the “patient”.”
Sir John Templeton says,”Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria.”
Hetty Green says, ”I buy when things are low and no one wants them. I keep them until they go up and people are crazy to get them.”
Final Words :
I hope you’ve found this article useful. If you have any questions, please leave them in the comments below. I’ll do my best to reply.
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About me : I am Mohammad Amirul Islam Opu. I am the Founder of ‘FINANCE SOURCE (FS)‘. Finance Source (FS), an online based financial institution, is established with multinational collaboration and is started its journey in 2017.