When it comes to day trading, your mindset is the most critical aspect on which to focus, but what specifically does that mean, and how do you go about it? Most traders I work with have that question initially, and it is very worthwhile to pursue because EVERYTHING depends on your state of mind when you are day trading.
Okay, so what does ‘mindset’ mean in practical terms?
Your mindset is the set of expectations, beliefs, attitudes, doubts and desires that you bring to day trading. Yes, this sounds like a pretty broad list, and it is – your mind is not a simple place. It is quite complex. Yet at the same time, getting your mindset right for good trading does NOT have to be an overwhelming task.
First thing to understand that much of your mindset is determined by a handful of perceptions. These perceptions include what day trading is all about, your relationship with money, and your self-image.
The reason that so many very intelligent and otherwise successful people struggle when it comes to day trading is because they underestimate what trading is, what all is involved in successful trading, and what it takes personally to make it as a self-directed independent trader. They struggle NOT because it is such a complex or inherently difficult occupation. They struggle because they fail to take the simple steps to make it a successful pursuit.
Why do so many people fail to do this?
Primarily lack of guidance. Day trading is perceived as such a simple endeavor that many think that they can just go it alone, getting their education on forums and in articles. While these can be helpful, this is one of the most difficult ways to learn a profession, which day trading is. Those that at least partially recognize that day trading truly IS a business, albeit one with low barriers to entry, give themselves a HUGE advantage.
How is that?
Because the simple act of recognizing the nature of the activity brings with it a host of perspectives, attitudes and expectations that put you in a very advantageous mindset – the right mindset to win. This is why the trading wisdom, “Treat your trading as a business” is SO crucial and more important than most realize.
When you treat your trading as a business, you inherently shift the odds of making it away from failure and towards success. The business-like approach and mindset bring a calculated approach to your trading, thus giving you a tremendous edge over those that simply approach trading as an easy-money endeavor.
Article Source: EzineArticles