The Ideal Trading Mindset PT.2

In part 1 of the Ideal Trader mindset we learned that we must become fearless but, not reckless in our trading. One of the way’s we learned to achieve this is through becoming systemized. It can be hard to achieve a systemized approach to trading the market when we are so over controlled by our emotions.

So how do we achieve a emotionless systemized approach in our trading?

We first must start creating a disassociation when being confronted with losses. We have to learn how to disassociate from feelings of failure and wanting to seek revenge from losing trades in attempt to achieve back a positive mental state after taking multiple losses.

Losing a trade does not make you a failure!

Losing something in life whether it may be big or small a lot of times shape how we feel about ourselves and our overall outlook on life. I’m here to tell you this same mindset will not bring you the trading results you seek. The ideal trading mindset is to understand you will lose trades and no system can ever be perfect but, we can all strive for perfect execution of our plans.

In seeking to achieve an unbiased approach to perfect execution of your trading plan and system for every single trade you take this in lies the gold that will keep you very profitable as a trader over time.

Tom Hougaard goes on to say that “I needed to re-live my trades to truly figure out what my problem was.”

A gem I recommend to all traders is to record yourself as you trade. This is how you can truly identify the mistakes you have been making. Asking yourself questions like: Am I taking trades too early? Am I entering too late? Am I over trading? Am I missing clear opportunities in the market? To name a few.

Tom goes on to say as you re-live your trades you find out what you’re great at and what you need to improve on. For him in particular he realized he was over trading, fighting the trend on most of his losing trades and giving away his profit from the week on Friday’s.

Doing this process helps you to become more systemized and disassociate from every win or loss you take in the market.

Now I want you to try this exercise in your trading. Look back and monitor the mistakes you have been making. Write them down! I’ll be doing this exercise with you and in the next post we’ll cover an action plan using my data that I compiled to take our trading to an even higher level.