A Traders Mindset – Price Action Trading

Oh, yes it does. It is the hardest element of conquering how to trade,and making it as a profitable trader and yet it is possibly given the least attention by learning and inexperienced traders………closely followed by the need for every trader to create and adhere to a trading plan.

Proper money management, a trading bank all backed up with a positive mental attitude and sound psychology…………….

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You cannot achieve success WITHOUT a traders mindset. End of………there really is nothing to debate or challenge about this requirement. A traders mindset is a big subject so let me try and be a bit more succinct about the KEY aspects of it. Calm, composed and patient: We are possibly still feeling fearful and anxious. These emotions are irrational. They must be erradicated.

If we still fear loss for example, we still have lots to work on. If we still get anxious and close trades way too early to relieve our anxiety, we still have lots to work on.

Accepting of the risks involved: Trading involves risk, as traders we have to accept it and we use a stop loss to limit any loss to shelter and protect our trading bank.

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We accept the risk as part of any trade we undertake, at the very outset of placing the trade. Not angry or frustrated: Rather than allowing these emotions to surface, positively find out what went wrong and learn from it win, lose or draw. We constantly need to keep our trading skills polished and any negativity in check, even when we have been at it for years. In control of ourselves and feeling confident: We need to be in control otherwise we will make some very bad decisions and the markets are in effect, controlling us.

Wishing and hoping the trade goes well is in effect refusing to take total responsibility for the trade that WE placed.

Taking full responsibility for our decisions: There are usually lessons to be learnt from the decision we took………. Not being influenced by others: Pull this urge back and go do something else………return later, to look again. So a traders mindset is a blend of all of the above and the above is not exhaustive but the thread that runs throughout the requirements clearly hinges upon adherence to the trading method and the trading plan IN ADDITION to sound psychology.

Do bear in mind, that some traders do really struggle because they fail to recognise that the trading method they hold dear, does not actually suit them, or their trading personality. There is no mileage in being a day trader for example, if you are naturally indecisive or if you cannot match your trading plan activities to the best times to trade each day.

It is important to understand your own trading personality and match it to a trading method that you can feel comfortable with. If for instance, you prefer to mull things over and sit back and analyse the merits and shortcomings of things, then you will likely find comfort in swing trading over a longer term period and this can range from a few days to weeks or months.

If you cannot muster the patience to wait for an entry to arise, then you are probably best suited to scalping small insignificant moves. It is very important if you want to see progressive improvements.

Take control, keep control and maintain control. At least such an approach is in keeping with a traders mindset. You can read more about trading psychology and related matters here: Price Action Trading Equation https: At that point I was finally able to discard, to the bin, every other trading system and method I had spent my hard earned cash on. Login Username Password Remember Me Forget? Username or E-mail Remember Password? Homepage PATE Trading Strategy Blog.

Of course we need a solid method by which to trade Proper money management, a trading bank all backed up with a positive mental attitude and sound psychology……………. So what is a traders mindset? When confronted with live markets we are: What else matters So a traders mindset is a blend of all of the above and the above is not exhaustive but the thread that runs throughout the requirements clearly hinges upon adherence to the trading method and the trading plan IN ADDITION to sound psychology.

What is often completely overlooked is that the trader has total control over when they trade What they trade…….. Day Trading Set Ups March 5, Price Action Trading February 19, A Traders Mindset May 11, The Four Trading Inhibitors October 20, Like Me on Facebook. Price Action Trading Equation. Start typing and press Enter to search. Trading With Pivot Points.