There is a BIG reason why traders don't succeed and it has nothing to do with method, skills or anything tangible and it's something most traders want to avoid talking about, so therefore they will never achieve any real success.
It’s time to get down to what really makes us great traders! It’s the mind, without your mind being in the right place, you can never achieve any real success with your trading. There is a series that is very difficult to find from Mark Douglas called Mental Toughness. I would have to say that this series is one of the biggest influencer's on my psychology when it comes to trading. I have spent a lot of my time for years studying from books, audio tapes and seminars trying to get a better understanding of our minds and figure out what makes them help us to be successful or continue to fail. The Mark Douglas material has played a large role in my understanding of the role our minds play. So I feel it is essential to review his material here in upcoming journal entries so that we can focus on the key points you need to take into consideration when focusing your energy on becoming that ultimate trader. What you will learn is not only essential for trading but also great for your personal life as well.
What skills must you acquire to be a great trader?
1. Need and edge.
2. Learn to think in probabilities.
3. Learn how to identify and neutralize self-sabotaging beliefs.
4. Understand how Euphoria is different from Confidence.
The three developmental stages of a trader:
1. Trading mechanically
2. Trading subjectively
3. Trading intuitively
When we trade, we have to realize that we are not perfect and our analysis will not be perfect. With all the variables that influence price on the charts, to be accurate takes a lot of time and practice. So knowing this, you can’t expect perfection from yourself but know that with time and patience and persistent work on your skills, your edge will become stronger and your analysis will become more accurate and reliable.
Till next time!