Trading stocks is primarily a mental game. You are your own worst enemy. The stock market is just a mechanism for displaying information. There are thousands of trading strategies that work. But why do so many people fail at this game if there are so many strategies that have an edge? Execution. And successful execution is all down to the mental state of the trader. In order to become a successful trader, you need to develop strong mental toughness to be at peak performance when you trade. You need strong resilience to deal with the plethora of emotions that come from making and losing money. FOMO is one of the most powerful emotions of them all. In order to help you succeed in these crucial areas of your trading, I am hosting a free, live trading workshop on next Monday, June 24th to give you the best strategies I’ve learned from trading for over a decade and working with 1000’s of students.
One of the biggest causes of trading mistakes is a concept known as “fear of missing out”. In my 10 years of trading experience, I’ve found it to be the most powerful emotion in trading. And one of the most common causes of trading mistakes.There are so many stocks moving every day, it is inevitable that you will miss out on a potential opportunity to make money. However, many traders cannot control their FOMO, and let it cause them to make reckless trading decisions. Chasing stocks and buying too high, trading subpar setups, oversizing. We will talk more about how to combat and remove FOMO from your trading in our next blog and in our trading workshop.
Building Mental Toughness
There will be so many ups and downs throughout your trading career. There will be many times then you can count where you will want to quit and give up. Most don’t have the resilience to become a successful stock trader. If it was easy, everyone would be a trader, and no one would ever work a 9-5 job. When you are consistently making money trading, you feel like the king of the world and no one can touch you. When you are in drawdown, you feel like a complete failure. In order to become a successful trader, you have to learn how to deal with drawdown and setbacks, and not let these periods have a big impact on your PNL curve. Over the years, I have learned a ton of ways to bounce back from trading drawdown. During the free workshop and blogs over the next couple of days, I will share some of the most effective strategies for dealing with and bouncing back from drawdown.