Hello everyone, today I am going to help you build mental toughness in trading. Trading is a discipline. The psychological aspects are the most crucial things in trading. You must always have faith that there is a way to make your goals. You must believe it is possible and believe that your trading strategy is good so you can count on it.
Resilience - Key to Success
So we can all agree that mental toughness is necessary for trading but hard to maintain. There is one word for it. I call it resilience. There is a guy named Martin Seligman who is known as being the creator of the theory of learned helplessness and talks a lot about resilience. Mental toughness is resilience and I think it is probably the reason why some traders keep going. If you keep going long enough you're eventually going to figure it out, it's not that trading is difficult, it's just the actual mechanics of profitable trading aren't difficult, it's actually all the stuff around it all the psychology and all the human nature. So resilience I think is key and so if you get into resilience you can read Martin Seligman's book. There are other people who've written a lot about this a big one is like I'll give you an example so what they talk about in the resilience.
Catastrophic thinking - When Things Go Bad
I've had two weeks of losing trades I'm down nine percent of my account and I start wondering what's going on. Is my system broken? Have the markets changed? Am I gonna lose all of my money? This is never gonna work for me, how am I gonna be able to pay my bills. That's catastrophic thinking. It's just taking a little tiny thing and blowing it up out of proportion because the reality is if I shift my focus and say: hang on, two weeks of losing trades, how many trades is that six? What are the probabilities that I'm going to have six losing trades? So actually what I'm talking about here is something that's actually quite likely to happen and even if it's happened it should not be a big deal because it's predicted given the parameters of your/my system. You are just trying to shift the way of seeing it instead of allowing yourself to snowball and get really hyper-negative, that's catastrophic thinking. That's one tool for resilience. If you want to be resilient you should shift that catastrophic thinking into another. For me, that's how I view mental toughness. It is sort of building up your resilience so that you're able to withstand those terrible moments that we're presented with as traders. That's really what we get paid for other people don't want to deal with these sorts of things and we have to deal with them face on.
Determination = Success
The facts are: if you believe you can do it, you can do it! Our determination greatly depends upon the strength of our desires or how badly we need something, the clarity of goals, the sense of purpose, and our mental attitude. You must be determined to prove yourself right. All people are unique with different gifts. Yet, with a positive mental attitude, a belief that you are just as capable as anyone else to succeed, you will have the foundation to build upon.
Determination is actually a simple thing, it comes with practice and then it can transform your life into something better. To become a determined person, first of all, you will have to discipline your life on a daily basis. Set one goal in life and mark the way to achieve it. Write down somewhere that there is no shortcut to success. Your every action should be oriented towards the same goal. Keep your mindset very positive and be determined even when you face failures. Believe in yourself, as you are just as capable as anyone else who has succeeded before you. Consider failures as hurdles but not as the full stop on the way to success. If you keep moving in the right direction with a positive mindset and determination, you will come out as a winner. Be determined to succeed in your dreams to be a successful trader, no matter how long it may take.
Hope you found today’s article helpful. Have a nice day :)
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Have a nice day :)