Pump up your mental trading muscles with these five helpful tips. Online Stock Trading Portal By RightLine Staff Writers
Strengthen Your Trading Mindset
5 Ways To Strengthen Your Trading Mindset
1) Take Full Responsibility For Your Trading Decisions. Although most investors simply follow the crowd, successful traders make up their own minds. Always welcome good advice – yet remember that it’s up to YOU to decide what’s really best. Focus on opportunity – there’s plenty of it. Don’t let the crowd determine your perspective. Tips for trading stocks online Strengthen your Trading Mindset The RightLine Report Subscribe to RightLine
2) Avoid Over-Trading. There are two types of over-trading – trading too often and trading too many shares. If you are trading too often just remind yourself that there’s really no good reason to trade constantly. Extreme over-trading creates stress, produces high commissions and invariably leads to losses. Instead of grabbing every stock that comes along, make sure each trade setup meets the criteria of your trading plan. To prevent trading to many shares, always use a risk calculator to determine the appropriate position size before you click the enter button. It relieves stress to know that the amount at risk for each position you hold is safely proportioned to the size of your entire account.
3) Go Easy On Yourself. There’s a tendency for traders who take responsibilty for their actions to be tough on themselves. Though some positive self-criticism is in order on occasion, don’t slam yourself too hard or too often. Even the best traders make mistakes. When you do, learn from them quickly and then let them go. Resist the temptation to yell at yourself. Self inflicted psychological damage is tough to overcome, so it’s best to avoid it entirely.
4) Think Like A Winner. Thinking like a winner turns you into a winner. The sum of your thoughts has an interesting way of showing up in your life. Thoughts are like muscles. The ones you use the most will grow to become the strongest. Pinpoint the thoughts you want to develop and focus on them regularly. Thoughts become actions, actions become habits, and habits determine results. Think of yourself as a success and you are much more likely to be a success!
5) Relax. Even though trading is serious business, the best traders know how to laugh – especially at themselves! Chill out, and give yourself regular breaks. This will keep your mind clear. Have fun as you earn – you certainly deserve it!