How to succeed in your career


Trading Psychology: The Mindset Of A Losing Trader

"The only place where success comes beforeperfectionists wanting to be right all the
work  is  in  the  dictionary."  -Proverb-time. Trading is not about being right. It is
about  making  money.
There are two types of men in this world. One
that falls and one that stands up after heJumping  The  Gun
falls. In NLP or Neuro-Linguistic
Programming, there is no such things asHow many men do you know that act before they
failure. A failure is simply classified as athink. A form of balance is needed when
feedback and every feedback is a lesson totrading the markets. However, many new
help you learn and improve. There are manytraders lack patience and discipline. They
hurdles a trader must overcome to becomeget too caught up emotionally in their ideas
successful. A winning trader views eachthat they often do things just to regret
hurdle  or setback as a step towards success.rushing  in  at  the  end.
The losing trader on the other hand does notThese type of traders have a hard time
hold  this  belief.  Ed Seykota said it best.following their trading plans. They may
understand what it takes to trade
"A losing trader can do little to transformsuccessfully but their lack of discipline and
himself into a winning trader. A losingself-understanding prevents them from doing
trader is not going to want to transformso. They believe that eventually things will
himself. That's the kind of thing winningturn out alright. They often play on a tilt
traders  do."after a loss and will trade recklessly with
their  capital.
Harsh but yet so true. Success only comes to
those who want it badly. Nothing in thisChange  Is  Good
world should be done half-way. Losing traders
refuse to take responsibility of theirMany people are too comfortable with their
actions. They prefer to blame externalcurrent situation that they dread change. It
factors for their mistakes and lossses. Inis common to see couples who are unhappy with
NLP, in order for a feedback to become aeach other remain in a relationship because
lesson one must take full responsibility ofthey are too used to being together. Some
his  action.people associate change with fear. This
attitude does not help in trading. Learning
We  All  Start  Off  With  A  Dreamis easier than unlearning. When something
does not work, one needs to change what he is
I think men in general spend half their lifedoing right away. A trader needs to be
dreaming. Without a dream, there is noflexible  and  hold  an  open  mind.
thought. Without thoughts, there is no
action. However, too many men spend theirCharacteristics  Of  A  Losing  Trader
time talking and thinking. What is required
is  action.1.  Undiscplined
Losing traders think similarly. They are so2.  No  money  management
used to thinking and not acting that when the
opportunity knocks at their door, they are3.  Unprepared
unable to answer it. Thinking traders usually
turn to trading systems; tweaking every4.  Overtrading  habits
indicator they have to find the perfect
signal. The problem is they spend too much5.  Easily  tilted
time jumping from one system to another that
they are never able to become good at one6.  Does  not  trade  with  probabilities
methodology.
7. Trades emotionally without controlling:
Thinking traders need to know the outcomegreed,  hope,  fear,  and  euphoria
before hand. This conflicts with their
ability to trade. They tend to be8.



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