Thread by @apurvansheth

My friend @VMK100 sent me this insightful short note on mental fitness for traders by @normanhallett. I'm summarizing the points worth learning in this thread for the benefit of #trading community.

1. You've got a superb #tradingsystem...so why are you losing?

You are not in control of your #emotions.

2. Why are you not able to limit your losses and let your profits run?

You have been taking the losing personally which doesn't allow you to take losses.

It’s not about YOU. It’s about THE MARKET. If you don’t take your emotions out of it,
you don’t have a shot.

You must see yourself as a trader not someone who is becoming a trader.

3. How to cope with #losses?

Stop seeing the outcome of your trades as reflection of you as person.

Develop a mindset that you are a #winningtrader whether you are losing or winning right now.

4. What would you choose between perfect system or a perfect soulmate?

Trick question! Perfect systems dont exist.

Assess the type of trader you are - impatient/Intraday, Positional or I'll trade what moves types.

You are more likely to follow your trading signals if the system “agrees with you.”

5. Can I become a #successfultrader?

Visualizing your future the way you want
it, is much more likely to make that future a reality.

Visualize the picture of
'you' as a successful trader…you WILL head in the direction of that picture you’ve created in your head.

6. Are you the "new trader"?

A new trader is either someone who has just begun trading and is yet to make the mistakes of a beginner, OR someone who keep making the beginner’s mistakes over and over again and never learns.

New traders blame volatility or institutional traders. The difference is a successful trader is IN CONTROL. New trader is not.

7. Are you well capitalized?

If you’re under-capitalized, your conviction will waiver as fear creeps in.
You’ll hesitate when your system gives you the green light and you’ll take your profit too early.

Your light will dim and in the end, after blaming market conditions, your light will go out.

To win, your attention should be focused on the process of trading, not on each win and each loss.

8. Do you know the force is within You?

Its not about changing your system. Its about changing YOU.

9. Do you have a plan for hurdles that may come your way?

What if the power or internet is down? A phone call comes on something other than the trade you are concentrating on.

Trading is a business. Treat it like one.

Do everything in your control to STAY FOCUSED on the one task of following your system to the T.

10. Do you seek others opinions before entering your trades?

There's a danger of MAKING a trade fit. Its better to be out of a market (or stock) wishing you were in it then wishing you were out.

Only you know what works for
you, system-wise and emotion-wise.

Trust in your tested trading system. It will serve you if you stick to it.

11. Do you keep a trading journal?

A trader must ensure two thing. First, he doesnt get knocked out in the early rounds by the market. Second, learn from his mistakes.

Keep a journal and be honest with your self-assessment. It will help you to stay alive early and be aggresive later on.

12. Do you rely on trading gurus?

Trading gurus may help but only to a limited extent. Your eexperiences are they only ones that count. Make your own mistakes. Learn from it by keeping a journal. Programme your mind.

13. Do you believe in your trading system?

Choose a system or guru whom you can trust 100%. Do all the backtesting you can before deploying the system. Think hard before deploying it. But just follow it once deployed.

14. Are you looking for the holy grail of trading?

It doesn't exist. Even if it does its within you and not outside. Focus on your mind rather than anything else.