Motivation is the is the main driver that will help you successfully complete of your trading goals. Without the right motivation a trader can be stuck with what is known as ‘permanent potential’.
This is your why if you don’t have any short or long term goals, then you are prone to waver, there is no solid psychological foundation and one of your 5 pillars of mental toughness is bound to crumble.
Next up ironclad confidence and self-belief is absolutely critical to trading success and is more than important in not just being able to execute your trading strategy effectively under pressure, and being able to perform to your potential, but also in being able to stay confident in sticking to those strategies after facing the setbacks you will doubtlessly face.
A great way to be confident is to ensure you are always prepared for all eventualities and that is by having a thorough trade plan; ensure you are educated on how to make a great one. A good trade plan plans for every outcome; the good, the bad and the ugly. All of which helps soothe your trading psychology by providing it with some degree of certainty. As the markets show, humans and uncertainty do not go well together!
On that note, a positive attitude is vital, recall what we said about emotional intelligence earlier. Why else do you see a lot of people going for Tony Robins, funds hiring performance coaching, or traders looking at trading mentoring or trading psychology coaching?
A positive attitude helps you tune in and trade in the zone. All of which helps to improve your trading psychology and maximise your edge.
Another neat trick is to always stick to your strengths as a trader, and how you can use them further. For instance, are you a trend trader and never do well in ranging markets? Do not change this.
While these are all key for positive trading psychology and the bedrock for a trading mindset, you need to able to focus and block out everything else, which is one of the primary keys to trading success.
These are things you can look at before we review what the trading literature tells us.
Now, onto the trading literature.