Even though I am already a funded trader, I still have a long development as a trader ahead of me. I want to take you on this path and show you that developing a "trader mindset" is not only worthwhile for actual traders.
Trading has a lot to do with life itself. Our circumstances have a direct impact on our behavior as traders. The school of life "trading" is for me a way to get to know myself better and therefore I claim that this way is desirable for traders as well as non-traders.
I take you with me in my development as a trader in this newsletter series:
“The Trader Mindset: Mental Strength”
Content part 1:
1.) Self-analysis over technical analysis
The development of mental strength - the focus of this newsletter series - is an essential requirement for the development of a trader.
The development begins with mental preparation for each trading day.
Long time I thought I only need to do enough market research and I will get it.
That makes sense because market research helps to reduce uncertainty and gives you a feeling of control. I thought that was all I need to do.
But actually, it is my head that is the weak link in the chain.
Technical and fundamental analysis preparation is just as important as mental preparation. My mental constitution and my attitude determine whether I will benefit from the technical expertise I gained during my research.
My process of self-analysis
So I devote more attention to self-analysis and I came to the belief that my emotional stability, as well as my knowledge of my strengths and weaknesses, may offer more significant potential returns than deep market focus.
This is my process of self-analysis:
I write down patterns of any kind in a trading journal to moment I notice them
I identify harmful patterns and their impact on profitability
I recognize useful patterns that I was not aware of
I try to adopt a position of a neutral observer who is only documenting facts.
Here is an example of a pattern I wrote down in my journal
I trades NAS100 today and opened trade at the green arrow below and got out of the trade at the level the orange arrow points to:
My target was the white line. I was able to withstand the first urge to get out of the trade but then FOMO got me.
I would have gained 1500$ instead of 950$ at that trade if I would have trusted in my abilities and myself. Fear of missing out is still, and will probably one of my biggest harmful patterns.
But the trading experience was positive. I won today and I wrote it down in my journal too. With experience, I will overcome FOMO and will significantly grow my profitability.
Takeaways:
Observe your behavior carefully
Write down the good and harmful patterns and work on them
Work on your trader personality
In my next newsletter, I will cover the next steps to developing mental strength:
How I reach my goals step by steps
How I deal with stress
awesome perspective you have shared with us defintely will take in and apply going forward thank you!
Love the graphic shows you entry and exit on the trade. Can’t wait for the next one :)