Most people enter the world of trading with the goal of making money. And while there’s nothing wrong with that, the problem is that most traders focus only on the money. They think that if they can just find the right strategy, they’ll be able to make a killing in the markets. And the truth is that only a small percentage of traders can make a living from trading profits. And that is not due to insufficient ability, but because most simply cannot control their emotions and lose not only all profits but much more than they can afford.

Most traders are equipped with enough technical knowledge, but it’s the proficiency in trading psychology and mind management that most are missing.

Because making money in the markets is impossible without mastering trading psychology. A good strategy is not enough. In fact, your trading strategy is only a small part of the equation. The majority of your success as a trader will come down to your trading mindset and your ability to control your emotions.

So what is the Mindset of a Successful Trader?

The mindset of a successful trader is one of discipline, patience, and consistency. A successful trader does not try to hit home runs all the time. Instead, they focus on hitting singles and doubles and letting their winners run. They are also willing to take small losses when necessary and they always adhere to their risk management rules.

Another trait of successful traders is that they are always learning and constantly trying to improve their craft. They know that there is no such thing as a perfect trading system, so they are always looking for ways to improve their strategy. They are also always reading and studying new things so that they can stay ahead of the curve.

Why should traders bother about the mindset?

In its most basic sense, the mind allows us to be aware of our thoughts, emotions, sensations, and everything around us. It encompasses all mental processes, including perception, thinking, reasoning, memory, problem-solving, decision-making, and imagination. These cognitive functions are what enable us to process information and make sense of the world.

Since the mind is made up of trillions and trillions of thoughts, we cannot be aware of all of them. The part of the mind that we are actively using is our conscious mind. It is the logical part, the voice of reason, which controls the actions we take. 

Beyond the conscious mind, there is the subconscious mind, which represents thoughts, emotions, and memories that are not immediately accessible to conscious awareness but can influence our behavior and experiences.

Our subconscious mind lacks reasoning, logic, or rationalization. Its function is based on habit and repetition, and it follows the instructions it is given. 

It is believed by many experts that our subconscious mind controls over 90% of what we do and is “a million times more powerful than the conscious mind” [Dr. Bruce Lipton at Stanford University Medical Center, an expert on the Power of Your Subconscious Mind] 

Successful trading requires not only technical knowledge, but also strategic decision-making, emotional intelligence, and discipline in exercising good trading habits. And those are heavily influenced by the subconscious mind. 

So, it is incredibly important for every trader to become aware of how their subconscious mind is influencing their results. Especially, if the results are far from what you want them to be.

You need to discover your subconscious mind-setting is set for success, because if it isn't, as Harv Eker, author of the New York Times Bestseller ‘Secrets of The Millionaire Mind’, puts it 

“Nothing you learn, nothing you know, and nothing you do will make much of a difference… By changing your subconscious programming, you take the first essential step to changing your results.”

How your subconscious mind can influence your trading?

Impulsive behavior

Trading can be a highly emotional endeavor, with fluctuations in the financial markets causing stress, fear, and excitement. Emotions can lead to impulsive decisions, cloud judgment, and result in significant trading losses. If your subconscious mind triggers emotions that cause impulsive behavior you will most likely fail to stay calm, focused, and disciplined in the face of market volatility.

Irrational thinking

Trading involves making a series of decisions, including when to enter or exit a trade, how much to invest, and which financial instruments to trade. These decisions can be complex and require critical thinking, analysis of data, and risk assessment. Your trading mindset, if not in “the right setting” impacts your ability to make sound decisions based on logic and analysis. You are then more prone to making emotional and impulsive trading decisions. 

Proving you’re right

Financial markets are dynamic and subject to constant change due to economic, political, and global events. You need to be adaptable and open to adjusting your strategy based on new information. Suppose you’re stuck in a subconscious mind program that you are not aware of. In that case, it might be very challenging to keep a flexible mindset and react quickly to changing market conditions and make necessary adjustments to your positions. You might be going against the trend just to prove to yourself that you are right.

Acting against your interest

Successful trading often requires patience, especially during periods of low market activity or waiting for the right opportunity to execute a trade. Discipline is necessary to stick to a trading plan, follow risk management rules, and avoid impulsive actions driven by fear or greed. But if you don’t know what to pay attention to inside your mind, and what program is running, your mind can manipulate you to take actions that are against your best interest.

Handling failures

Trading involves accepting that losses are a natural part of the process. How a trader handles losses can significantly impact their overall success. Depending on your previous experiences with losing (and not just in trading), your beliefs, and your self-worth, your mind will decide how you will bounce back from losses, whether you’ll learn from mistakes, and if you continue improving your strategies.

Overconfident actions

The mind plays a critical role in understanding and managing risk. As a trader, you need to assess the potential risks and rewards of each trade and decide on an appropriate position size to protect your capital. If you don’t know how to manage your mind it’s gonna take you places. And instead of a clear and rational assessment of risk, you will act impulsively and often feel overconfident.

Self-sabotage

Believing in your trading abilities and having confidence in your strategy is crucial. A positive and confident trading mindset can help you overcome self-doubt and make bold, calculated decisions. However, many people have beliefs about what they can and cannot do, whether they are worthy of success, and also many unrealistic expectations that they are not aware of. If that’s the case also with you, you are most likely repeating the same mistakes over and over and don’t even understand why you do that. When your mind is sabotaging your efforts it is close to impossible to build any sort of self-confidence and achieve trading success.​

How to discover what is YOUR trading mindset?

Discovering your trading mindset involves gaining insight into your beliefs, attitudes, and thought patterns. It is an ongoing process. It requires continuous self-reflection and a willingness to learn and evolve.

Here are some steps to help you discover your trading mindset (or in other words your mind settings):

1: Self-Awareness

Self-awareness is the first step in understanding your trading mindset. Pay attention to your thoughts and emotions throughout the day. Be mindful of your reactions during trading and also outside of trading, to different situations and people.

2: Question Your Beliefs

Examine your beliefs and assumptions about yourself, others, and the world. Ask yourself where these beliefs come from and whether they serve you positively or negatively, and if they are all still valid.

3: Seek Feedback

Ask for feedback from trusted friends, family members, or mentors. Sometimes, others can offer insights into our mindset that we may not see ourselves. If you would like to get some help with discovering the beliefs that sabotage your trading check out my coaching program Trading Mindset Mastery Journey.

4: Observe Reactions to Challenges

Pay attention to how you react to challenges and setbacks, especially losses in trading. Do you see them as opportunities to learn and grow, or do you get discouraged easily? Do you fall into a victim role and keep thinking bad things always happen to you? Your response to challenges can reveal aspects of your mindset.

5: Explore Core Values

Understand your core values and how they influence your decisions and behaviors. Your values play a significant role in shaping your trading mindset. Especially since some of the values you have acquired in your life might not be effective in a trading environment.

6: Journaling

Keeping a trading journal can be a powerful tool for self-discovery. Write down your thoughts, feelings, and experiences regularly. Especially during the trading day. This can help you identify patterns in your thinking and gain clarity on your mindset.

​Once you've gained a deeper understanding of your current trading mindset, the next step is to rebuild this foundation, align your beliefs, detach from what is not serving you, understand what's happening in your mind, and use it to your advantage so you can build a successful trading mindset that supports your trading and not working against it!

How to build a successful trading mindset?

Here are the essential steps so you can start this amazing journey of creating a successful trading mindset:

STEP 1: Embrace Growth and Change

Be open to growth and change. Understand that mindset is not fixed and can be developed over time with conscious effort and practice. Your mind was set at some point, and if you can set it again. It’s a matter of learning what your current setting is and how to change it.

STEP 2: Challenge Your Limiting Beliefs

Identify any limiting beliefs that hold you back from reaching your goals and challenge them. Replace negative or unhelpful beliefs with more empowering ones. Remember, the belief, even the strongest one is just a thought you keep thinking. Gove your attention to thoughts that empower you.

STEP 3: Set Realistic Goals

Define clear and achievable trading goals. Establish both short-term and long-term objectives and develop a trading plan that aligns with your goals. Having specific targets will help you stay focused, positive, and motivated.

STEP 4: Embrace a Growth Mindset

Adopt a growth mindset, believing that your skills and abilities can be developed with effort and learning. Embrace challenges and setbacks as opportunities to learn and improve rather than failures. Think about all the experiences, even the negative ones as something that is happening FOR you and not TO you.

STEP 5: Stay Grounded During Your Success and Failure

Avoid becoming overly confident during winning streaks and overly discouraged during losing streaks. Maintain a balanced mindset and focus on the long-term results. Practicing meditation and yoga is a great way to achieve that.

STEP 6: Surround Yourself with Supportive Traders

Engage with a trading community, and find a trading mindset coach or someone with whom you can share experiences, ideas, and insights. Having a support system can help you stay motivated and accountable.

STEP 7: Take Breaks and Manage Stress

Trading can be demanding, both mentally and emotionally. It requires a high level of mental performance every time you are at the trading desk. Take regular breaks, practice relaxation techniques, and manage stress effectively to maintain a clear and focused mindset.

STEP 8: Read and Educate Yourself

Read books, articles, or take courses on topics related to personal growth, mindset, and psychology. Learning about different perspectives and having someone to help you expand your understanding of yourself and your mindset can accelerate your trading progress significantly.

If you have been putting lots of effort into getting positive trading results, but with no effect - check out my coaching program The Trading Mindset Mastery Journey and build consistency in just 90 days.