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Co-Wise: How do you improve your trading mindset over time?
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How to attain a proper psychological mindset for winning trading?

Greed and fear are human nature. We suffer acute distress when reaching a psychological breaking point. People with different personalities and habits cope differently with market fluctuation. What separates a winning trader from a losing one is their psychological mindset. The beliefs and attitudes you develop during your investing journey are essential to conquering the world of trading.
How to attain a proper psychological mindset for winning trading?
In the early stage of investing, a combination of paper trading and real trading is ideal for newcomers. As the saying goes, practice makes perfect. Paper trading is an excellent arena for investors who are yet to develop a proper trading mindset. They can adjust their strategies and psychological expectations by simulating investing scenarios to prevent acute psychological distress in real trading. Besides, newbies should also start placing firm orders from the very beginning to have a taste of the stress and rapid mood swings caused by the changes in market conditions.

In the middle stage of investing, you may be confused by the timing of taking profit and stopping loss. Before making decisions, you should consider how much risk you can take. What to do at this point is a test of mentality. You might not stop thinking about what would happen next. When the price crashes, you might tell yourself that it's a perfect time to increase position and earn profits with low costs. When the price surges, you might want to wait for higher rewards. Yet, there are flaws in the above reasonings. Is there a better way to determine when to take action?

With a certain amount of experience, you may know yourself and understand the market better. Just follow the system you've built along the way to decide what to do next amid confusion. A good trading mindset can't be developed overnight. It requires tremendous efforts to progress and improve.

The more you know, the calmer you are.
Suppose you've built a complete trading system. In that case, you will always have a solution to difficult situations and be confident that you can tolerate the risks and seek positive returns. You won't be excessively excited about winning or excessively despairing about losing. However, if you are not disciplined in your trade and can't view the market objectively, your emotions might overpower your intelligence, resulting in significant losses.

You can ask yourself the following questions:
How do I train my trading mindset?
How did I overcome emotional trading?
How to train my mind to be stronger?
How to shift my mindset and embrace change?
How to quickly adjust myself after losing money?

Trading is not a contest between you and others. Instead, you are your biggest enemy. What you need to do is to know yourself and develop a training mindset that suits you the best. It is wise to be patient, provide yourself with a margin of safety, and leave room for error.

That's all for today. Please click How do you improve your trading mindset over time? to join the discussion. Free $F stocks are awaiting!

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  • NANA123 : My biggest enemy is myselfundefinedundefinedundefined

  • Happymoooooo : emotional tradingundefined

  • 让子弹飞(SG) : When you think it is bottom. It will give you a new bottom😂😂😂

  • jjjjjjjjjjjjjjjjjjjk 让子弹飞(SG): exactly!! bottomless rabbit hole

  • KDevil87 : Many of us will definitely be affected by profits/loss. The red and green signal will definitely play an emotional and somewhat irrational decision making.

    However, what I can share is ..
    - Always go back to fundamentals and the main question to answer is: Is the business doing well? (I will always go back to TA on Debts, P/E ratio, future order book)
    - are you convince that the said company can stand out in the competition?
    - is the future for the industry in demand?

    Just sharing my random thoughts out to fellow moomoos

  • Trader6474 : undefinedHow do I train my trading mindset?
    -Tbh, it won't be easy to stop your emotions. For starters, build up your confidence. Ensure you did enough research and put trust in the company you invest. If you success, good job and continue putting up the good work. But if you fail, just accept the loss and learn from it. You will be better through experience. The key is never giving up.

    undefinedHow did I overcome emotional trading?
    -Read up news and updates daily, be very clear of your objective before you look at the graphs and chart. Set a realistic target and loss.

    undefinedHow to train my mind to be stronger?
    -One good way is meditation. Everyday spend some time sitting in a peaceful place, clear your mind for around 15 mins. It help you stay calm in all situations. Do not let fear overcome you.

    undefinedHow to shift my mindset and embrace change?
    -If you're very sure that there will be changes (e.g. stock market crashing, higher interest rates resulting in loss of market profit), sell your stocks and wait. At least you won't lose money, rather than risking in an uncertain or unfavorable situation. Calm down and speculate what happens over the next few days/months first. When the stock market is more stable, then slowly start investing again.

    undefinedHow to quickly adjust myself after losing money?
    -STOP STOP STOP investing for few days if you're panicking. Make sure you are calm and ready before starting a new trade. Reflect on what went wrong and what improvement can be made in the future. This is speaking from my personal experience :)

    I really hope my past experience will help more people do better undefined

  • Irish God : Eliminate two words from you vocabulary... FAILURE & LOSING.
    mistakes build character. you only have two ways to look at a situation...
    YOU WIN or YOU LEARN. Failure and Losing are not even options anymore

  • eitokun : Carry out part trading and take up as many course possible - fundamental & technical. Have variety of sectors to handle rotation.

  • Meta MooOP 让子弹飞(SG): undefined

  • Meta MooOP jjjjjjjjjjjjjjjjjjjk: A good trading mindset can't be developed overnight. It requires tremendous efforts to progress and improve.undefined

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