The Limiting Beliefs That Are Destroying Your Chances of Trading Success
Since I started trading albeit on a very part time basis, my results have been mediocre at best and plain rubbish for the most part.
Right from the very beginning I’ve struggled with many different aspects of trading whether its money management, learning and following a strategy, managing trades but there’s one thing that stood out over and above anything else…
My overall mindset toward trading.
You see, what I’ve discovered over the last couple of years is that the key differences between a seasoned professional Forex trader to that of an amateur trader is they way they think.
Amateur traders like myself think in a certain way, which causes no end of struggles and no end of pain.
They possess certain beliefs which almost inevitably result in failure.
So what are these beliefs I hear you ask…
Amateur Trader Limiting Belief #1: “I Can Get Rich Quick”
The amateur will see trading as a way of making lots and lots of money, with minimal effort in the least amount of time possible.
First and foremost they will be emotionally attached to the profits they will make rather than managing the trade as it evolves.
They will also have unrealistic expectations on what kind of profits they will consistently make every day, week or month.
A professional trader on the other hand, will embrace the long game, where their success is measured on making small but consistent percentage gains on their account rather than the amount of money or pips they have made.
Amateur Trader Limiting Belief #2: “I need to be constantly in the markets”
Amateur traders assume the more trades they place the more money they’ll make.
This was definitely something I struggled with for a long time.
They’re much more of an emotional trader and are often beset with FOMO (Fear of Missing Out)
When it comes to the seasoned professional, less is very much more when exposing themselves to the markets.
As Bill Lipschutz, one of the world’s leading Forex Traders once said “If most traders would learn to sit on their hands 50 percent of the time, they would make a lot more money.”
Whether they’re ‘sitting out’ of the market or in a trade, they will embrace either prospect in equal measure.
When they opt to stay out of the market, they will see that as an opportunity to preserve their trading capital (the #1 objective for every successful trader).
Conversely, when they’re actually in a trade, they will attach no emotion to it and merely view it as a opportunity of potential gain where the probabilities of it being a winner are stacked in their favour
Amateur Trader Limiting Belief #3: “Trading plan? I don’t need one of them!”
The amateur will jump in on trades without any kind of trading plan. They’ve likely experienced success in other areas of their lives and therefore developed an ego complex, causing them to blindly enter trades willy nilly and conveniently forgetting that only 8%/10% traders ever make consistent profits.
The professional however will plan the trade and trade the plan religiously. Their trading strategy will be set in stone with risk parameters in place, support and resistance levels, stop lossess, profit targets etc determined before any trade is entered.
Amateur Trader Limiting Belief #4: “I must know everything about Forex and the markets.”
The amateur thinks that learning everything about Forex and how the markets work will make them a much more successful trader.
This is so not true.
Granted, experience is crucial when it comes to trading, but the amateur always has the tendency to over-complicate things.
They will learn about all kinds of different trading topics that will benefit them intellectually but have little practical value when it comes to their trading.
This desire to try to learn and know everything ironically clouds their judgement when trading and often brings on a state of analysis by paralysis.
When it comes to the experienced trader, they again embrace the ‘less is more’ approach where their focus is on keeping things simple and following their plan and chosen strategy.
They know that doing this will serve them far better over the long term as opposed to subscribing to market commentary and rhetoric.
Amateur Trader Limiting Belief #5: “The Markets Are Out To Get Me”
From the beginning every winning trade will feed the amateurs ego, however when they start to lose the blame game begins. Every loss is usually down to someone or something else rather than themselves.
The favourite is usually ‘the market’. (I can definitely relate because that been my go to around 90% of the time.)
Other times it’s the broker, internet connection, the kids or the cat.
The professional trader will ALWAYS take full responsibility for every trade their take and accept that the market is always right whatever it does.
They treat their trading like a business, and through rigidly following their plan and strategy it keeps them accountable at all times.
As I mention at the beginning, I’ve experienced some pretty rubbish trading results since I started over 2 years ago, which is down mainly to my mindset and some limiting beliefs I had.
Trying to work through the Forex trading minefield to achieving success is challenging to say the least.
However identifying if you possess any of these limiting beliefs I’ve mentioned above can hopefully provide you with one of those aha moments, that you can begin to turn around and use to your advantage.
Take Your FREE Trader Psychology Test
To help establish what psychological profile you have, you can complete this FREE online test.
For more info go to https://www.daytradingpsychology.com/trader-psychology-test/
Give it a try and see what results you get.
