GUEST POST BY KAREN OATES
To succeed at trading the stock market, you must be fully aware of how your mindset plays the most crucial role in your success. The stock market is driven by human emotion and unless you have control of your actions and reactions, it can be difficult to get the results you desire and it can in fact see you give up early.
Here are some useful tips on how to fortify your trading mindset.
- Always take full responsibility for your trading decisions.
- Successful traders make up their own minds whilst investors, as a rule simply follow the trend of the crowds
- Consider and be open to good advice from experts, realizing that the final and ultimate decision is up to you and you alone.
- In every trade situation, regardless of the loss or profit, focus on the learning opportunity and how well you executed your plan. Do not let the + or - signs for that trade dictate whether the trade was a good on or not.
Avoid the pitfalls of 'over trading' and 'under trading.'
- There are basically two types of over trading. Trading too often and trading too many shares/contracts.
- Remember that there really is no good reason to trade constantly, since extreme over-trading creates stress, produces high commissions and can often lead to more losses.
- Market forces do not last forever and time has shown various examples of the law of gravity in the trading market- that whatever comes up must go down. - and vice versa.
- Instead of grabbing every opportunity that comes along (or thinking that it is an opportunity) make sure each trade setup meets the criteria of your trading plan, don't be over confident or scared of making trades.
- Utilizing a risk calculator to determine the appropriate position size before you enter a trade can help you determine how many shares/contracts you initially buy. You can start off with a small position and add as the trade continues in your favor. It relieves stress to know that the amount at risk for each position you hold is well proportioned to the size of your entire account and this is great asset management.
- Whenever you feel that you did not stick to your trading plan and made a mistake, quickly learn from that and let it go.
Always think like a successful trader.
- Thinking and acting as a successful trader turns you into a successful trader, since your thoughts and actions create what you get in your life.
- Thoughts are like muscles, the ones you use the most will grow to become the strongest. Work on the thoughts you want to develop and focus on them regularly, since it has the tendency to become action, action become habits, and habits determine results.
- Always think of success and you are much more to be on your way to success.
Finally, relax and enjoy your trading! If you don't enjoy what you do then that will show in your results.
Having fun and enjoying at what you do is a very good motivator to give you focus on successful trading
Go have fun and make yourself some serious money!
Karen Oates is a seasoned options trader and mindset coach who excels at helping traders understand themselves and the stock market by using a 'keep it simple' trading plan and the mind tools of success through mastery of mindset, focus, behaviors, believes and strategies.
Karen is certified as a:
Master NLP Practitioner
Master Results Coach
Specializing in Advanced Subconscious Reprogramming and Master Hypnosis
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