17 effective ways to use day trading psychology to get out of a failing cycle

trading mindset Mar 25, 2022

If you are reading this, I assume you have been trying to make consistent trading profit for some time, but with no or little success. And if that’s the case, you are like most people. At the time of writing this, and in fact this statistic stayed the same over the years, about 95% traders never succeed to become financially independent. 

It’s sad, but no surprise, if you consider that most people learn trading following the same path. And most do not think about day trading psychology at all.

 

Does that mean you are doomed and preconditioned to fail? No. Not if you do something different than everyone else is doing. Because if you want to achieve different results than you are getting right now, you need to change your actions. And as Albert Einstein once said: “The world as we have created it is a process of our thinking. It cannot be changed without changing our thinking.”

   

Here is a list of incredibly effective ways to use day trading psychology to change your actions. You can easily implement them into your trading process and impact your results right away. Even if you just pick a few, you will see a difference. I promise!

 

1. Write down the following note and place it next to your trading screen

  • “Being right depends on the context - getting out of a losing trade is the right thing to do”.  

 

2. Replace “I am” with “I do” when you talk to yourself during trading (and outside of trading, too)

  • For ex. “I am so stupid” replace with “I just did such a stupid thing”    

 

3. When you get triggered and you are about to react, make a note of the thought that pops up in your head first

 

4. When you happen to be revenge trading - ask yourself “What am I trying to prove? And to whom?”

 

5. Write down what trading success means to you. List all the things that trading is going to change for the better in your life. Now look at it! Do you realize how much pressure you are putting yourself under? Your performance suffers, because of that. Adjust your goals, Take the “must happen” away. Take some pressure off - put less at stake. 

 

6. There are many ways to walk the path to success. Ask yourself, what is your way and follow it. We are all unique and our way is the best way for us.

 

7. No one knows for sure what’s gonna happen. Not the market guru, not the technical indicator, not you. Stop trying to predict the future. It's the  psychology that matters the most in day trading - not your ability to do magic. 

 

8. We have 60-70 thousands thoughts per day. 90% of those are the same as the day before. If you want to stop repeating the same trading mistakes, start monitoring your thoughts and change those that cause you to make those mistakes. 

 

9. Question your trading decisions before you get into a trade. Not when you’re in it.

 

10. Make a list of reasons why you would get in and out of a trade. Set your criteria. What do you need to see happen to pull the trigger?

 

11. If you are looking into company fundamentals for confirmation of your decision to stay in a losing position - that’s your queue to get out. 

 

12. When a trade goes in your direction, but you are looking to get out before your target is reached, for no reason other than fear of losing your gain - switch to a higher timeframe to change your perspective.

 

13. Spend more time away from your screen than looking at it during the trading day.

 

14. Take a lunch break. Take time for a walk, a workout or a nap every day. Start getting used to the free lifestyle you want. It will help you relax. 

 

15. Get a standup trading desk (if you’re physically able to stand). There are many good reasons for it. You just have to trust me on that! 

 

16. Freedom goes hand in hand with responsibility. Responsibility means bearing the consequences of your actions. If you are taking losses that you didn’t account for, that shows you did not fully accept the responsibility. And that shows your inability to handle freedom. 

The universe only gives us what we can handle and what we are ready for. You will achieve freedom with trading when you prove you are ready for it. So show the universe you are ready!

 

17. Do what you need to do to move forward. Don’t just wait hoping things will get better. If they haven’t so far - they probably won’t. Unless you change what’s causing you trouble. It’s all in your hands. Or I should rather say… it’s all in your head.

 

After 2 years of repeating the same mistakes and losing my gains over and over again, these 17 ways totally changed the course of my trading in just a few months. I was able to create a consistent living income and I’ve been profitable since. It worked for me, so why wouldn't it work for you? You can at least give it a try!

 

If you are struggling with losses and cannot seem to move forward, schedule a free strategy call with me today and we can talk about how to change that.

Are you ready to make a change and positive impact on your trading results? 






 
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