- To be a successful trader, you will require a successful mindset.
- You just cannot achieve success in trading without having a proper mindset.
- This blog is not about trading psychology or the trading mindset.
- Here, we will discuss the real-world mental hacks that the professional traders will use, which are not just useful in trading but are also useful in life too.
- The basic difference between an amateur trader and a professional trader is their trading mentality.
Top 4 hacks to improve trading
- There are several hacks that will help you to improve trading.
- Some of the main hacks are discussed here.
They are as follows:
Don’t get attached to your trading positions
- The most important characteristic of a professional trader is the ability to mentally detach from the live trades.
- Amateur traders will often fail in this.
- Here, your goal is to literally feel nothing once you take the entry in the trade.
- Once you get this point, you will stand a much better chance of making money in the market because you will automatically avoid all the trading mistakes that will occur due to your emotions.
- Once you enter the trade, you should avoid looking at your P&L reports.
- Professional traders have also learned that the easiest way to detach from a live trade is to simply avoid looking at their P&L.
- After you place a trade and set your target and the stop loss, you should just close your broker's window and look at the charts and then observe the price action.
- Staring at the P&L will not help, and you just cannot control the market.
- All you can control is your own self.
- You should also not try to guess when you have already planned your stop loss and watch the P&L while trading, as this is just a stupid thing.
- There is no bigger trading mistake than watching your P&L for no good reason.
- You should not feel the ups and downs of the market when you have placed the orders.
- When a trader keeps looking at the P&L while trading, it will result in second-guessing.
- You will also start to feel uncomfortable when the price starts to move against your direction by a little margin.
- Also, when the price moves in your favor, then you will start getting excited, and you may not be able to hold onto the winning trade.
Start considering trading as your business, if you really want to improve your trading
- Your competition in the market should be very intense.
- You are always competing with the sharpest minds in the world who have more capital, better knowledge, and better equipment.
- However, you may just one thing that they may not have and that is a sickening desire to be the best and to play the game with consistency and more discipline.
- This is because that it is how you will beat them.
- One of the hardest thing to understand in trading is that you will be competing against a thousands of people at a time and there will be no place for the errors.
- If you will commit any mistake, you will only have to take the punishment.
- Trading should be considered to be an only psychological sport which you will have to play against the big institutional investors, hedge fund managers, and some ace investors.
Come with a plan
- Most of the traders will not come with a plan, as they will just look at the charts and place their trades.
- It is a big mistake that many traders will commit knowingly and unknowingly.
- If you are just not trading with a plan, then you are gambling.
- Trading is a serious game, and you should simply master all the aspects of trading, such as psychology, trading systems, and risk management.
- You should view each trade as a deal and a deal between you and the person opposite to you.
- You should believe in your trading system.
- You will have to work on this at least for the initial phase.
- Also, you will have to develop your chart reading skills.
- Charts will represent the behavior of the market participants.
- If you read the chart properly, then you will get to know what other people are thinking at a particular point.
Do not let money control your mind
- Money has the ability to affect you mentally, regardless of whether you are making it or losing it.
- If you want to fix your trading, you will have to solve this problem first.
- You will also have to fix your money mindset to be in total control of your trading.
- Some of the main problems faced by the traders regarding money are fear of losing money, risking too much on just one trade, and no capital management.
- Also, you will have to plan at which level you are going to take profit or at which level you are going to accept the loss before entering into the trade.
- In simple terms, you will need entry and exit plans.
Conclusion
To improve your trading, you will have to stay consistent and disciplined over a long period of time.
Frequently Asked Questions
Q1) Is trading 90% psychology?
A professional trader knows that trading is just a 10% thing, and the remaining 90% is psychology.
Q2) How to train your mind for trading?
By understanding and managing emotions, avoiding common pitfalls, and embracing individual strengths and weaknesses.
Q3) What is the secret to successful trading?
Emotional control is the secret to successful trading.
Q4) What is the trick for trading?
Using a risk-to-reward ratio is the best trick for trading.
Q5) Can you become rich with day trading?
It is possible to earn money with day trading, make a living from it, and generate high income.
About Us
Nifty Trading Academy is our academy where we teach you about the stock market as well as technical analysis. We also provide live trading sessions and upload blogs for the same.