14 Tips to Improve Your Trading Mindset

by | Feb 8, 2022

Your mindset is an important part of your trading.

How you think will impact how you trade.

Your mindset will ultimately determine what you focus on, how well you learn, how you react to trades, and so on.

Today, we are going to discuss some quick tips to help you optimize your mindset for trading success.

Focus on YOU

Be inspired by others – don’t be influenced by them. There’s always someone doing better and always someone doing worse. Focus on YOU.

 

View this post on Instagram

 

A post shared by Nathan Michaud (@investorslive)

Focus on Process Over Money

Every trader wants to make money – no secret there. That said, the best traders focus on PROCESS over PROFITS. The money follows…

 

View this post on Instagram

 

A post shared by Nathan Michaud (@investorslive)

Find Consistency in ALL Areas of Life

Your trading can be a reflection of other areas of your life. Chaotic life = chaotic trading.

 

View this post on Instagram

 

A post shared by Nathan Michaud (@investorslive)

Always Aim for Improvement

As a trader, you are your own boss, which means YOU are responsible for your performance assessments.

Get in the habit of reviewing your trading and looking for areas of improvement.

 

View this post on Instagram

 

A post shared by Nathan Michaud (@investorslive)

Be Honest With Yourself

Trading is simple.

When you are right, you get paid. When you are wrong, you lose money. Simple as that.

The key to increasing profits and decreasing losses is recognizing when you are RIGHT and when you are WRONG. The only way to do this effectively is to be honest with yourself…

 

View this post on Instagram

 

A post shared by Nathan Michaud (@investorslive)

Beware the “Us vs. Them” Mentality

Trading is a solo sport. There are no teams and no sides.

The only “side” is the right side of the trade.

If you find yourself teaming up and looking for people to blame for the results of your trades, you aren’t going to make it.

 

View this post on Instagram

 

A post shared by Nathan Michaud (@investorslive)

Don’t Surround Yourself With “Yes” People

Trading isn’t about feeling right or feeling good.

It is about being right and collecting profits accordingly.

If you only surround yourself with people who think the same as you do, you may be blind to reality.

Embrace diverse opinions and seek truth over validation.

 

View this post on Instagram

 

A post shared by Nathan Michaud (@investorslive)

Be Able to Define Your Strategy

Good trading is purposeful.

In order for your actions to be “purposeful,” you need to be able to define your purpose.

 

View this post on Instagram

 

A post shared by Nathan Michaud (@investorslive)

Focus on Quality Over Quantity

Many traders experience “FOMO” or “shiny object syndrome.” They are easily distracted and they try to catch every move to avoid missing out.

The best traders are focused on the QUALITY of traders over the QUANTITY. They recognize that one good trade can be better than ten subpar trades.

 

View this post on Instagram

 

A post shared by Nathan Michaud (@investorslive)

Understand When You Have an Edge and When You Don’t

What’s your edge?

If you want to be a successful trader, you need to recognize your strengths and weaknesses.

Be honest with yourself and determine what you are good at and what you should avoid.

 

View this post on Instagram

 

A post shared by Nathan Michaud (@investorslive)

Wait for Your Edge

Once you know your edge, WAIT for your edge.

Be patient and strike when an opportunity presents itself.

 

View this post on Instagram

 

A post shared by Nathan Michaud (@investorslive)

Beware the Treadmill

Traders are always trying to reach the next level. It’s a neverending process.

This ambition can fuel you at times and cause you to act recklessly at others.

Don’t get stuck on the “treadmill” – always chasing the next level without purpose. Focus on what drives you and learn to appreciate the journey.

 

View this post on Instagram

 

A post shared by Nathan Michaud (@investorslive)

Take Accountability

Successful people take fate into their own hands. They don’t point fingers or blame their “bad luck” on others.

If you want to make it as a trader, you need to take accountability for every move you make.

 

View this post on Instagram

 

A post shared by Nathan Michaud (@investorslive)

Remember Your Purpose

Chasing monetary goals is an endless pursuit.

If you want to live a balanced and fulfilling life, you need purpose.

What REALLY drives you? WHY do you trade?

 

View this post on Instagram

 

A post shared by Nathan Michaud (@investorslive)

2 Comments

  1. Wow!! Wow! Eye opening!! I am a culprit of few of those things you listed there..esp jumping from trade to trade. Yes I know my edge but execution of it is another thing. Greed I believe is the one making me jump from one trade to another hence missing quality trades

    Reply
  2. Thank you for the advice. The most important part for me is the process, and sometimes it is difficult to follow it

    Reply

Submit a Comment

Your email address will not be published. Required fields are marked *

Related Content

15 Trade Management Tips to Improve Your Trading

15 Trade Management Tips to Improve Your Trading

Trade management is an important part of the trading process. It's not enough to have an effective strategy - you also need to execute that strategy properly. Think of this distinction as the difference between creating a well-rounded business plan and actually...

Adapting to the Market – 8 Practical Tips for Traders

Adapting to the Market – 8 Practical Tips for Traders

The stock market is constantly changing. If you are fortunate enough to find success as a trader, you shouldn't get too comfortable. A strategy that works for days, weeks, or months is not guaranteed to work forever. Career traders who achieve long-term success...

The Process Behind Trading Success – Nate Michaud on SimCast

The Process Behind Trading Success – Nate Michaud on SimCast

https://www.youtube.com/watch?v=yaHEIFvHh5g Topics Discussed Long Trading vs. Short Trading (and Where Nate Makes More Money) Using a "Macro Mentality" in Trading Scaling in and Out Around a Core Being Early vs. Being Right Why Day Trade vs. Invest? Finding The Best...

13 Tips to Minimize and Prevent Trading Losses

13 Tips to Minimize and Prevent Trading Losses

How much higher would your trading profits be if your losses were cut in half? How much higher would they be if you only lost half as frequently? Most traders focus on chasing profits and forget that minimizing losses can have the same net impact on your bottom line....

Day Trading Course