How do I learn trading psychology?
I failed at building consistency because I didn’t understand trading psychology.
Until I studied Mark Dougla’s teachings.
Here are his top 4 lessons which will level up your mindset to become a profitable trader.
- Accepting the risk - Most traders fail because they can’t control their emotions. Accepting the risk on every trade you take will lead to a peaceful mind. It will make it easier for you to manage and control your emotions. When you genuinely accept the risk, you will be at peace with any outcome.
- Any single trade has a complete random outcome - Trying to control the outcome of the trade is what losing traders focus on. Each trade you take has an uncertain outcome which means your focus needs to be on taking the best setups and controlling your risk.
- Losing periods are normal - As soon as a trader faces a few losses, they change their strategy. This creates inconsistent results. You need to look beyond today’s losses. Let the numbers play out, this is how consistency is built. Rarely will the typical trader stay with his system beyond two or three losses in a row and taking two or three losses in a row is a very common occurrence for most trading systems.
- The money is made in the mind - 90% of traders who consistently lose only focus on the technical side of trading and as a result they never make money. Consistency is created by the way you think towards the markets - this means accepting the law of probabilities. The consistency you see is in your mind, not in the markets.
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