A Positive Mental Attitude and the Right Mental Approach Leads to Mastery
08/03/2009 9:49 am EST
Based on my own experience as well as working with hundreds of traders over the years, I have come to the conclusion that there are three major components to winning in the stock market: An excellent method, a customized plan that fits you, and the right mental approach. While mastery of each of them is paramount, building the right mental approach seems to be most challenging for the majority of traders.
Without a winning attitude and the proper mindset, even the soundest of all methods will lead to lost money. In fact, a winner is more defined by mental makeup than by method. This is why the trader with a winning attitude and a faulty approach can still produce positive results, while the trader with a loser's mentality will stumble and fall, despite an excellent approach. Don't think so? What do you actually think causes one trader to play six winners in a row, and another to experience six consecutive losses? How is it that one trader can use a daily newsletter and win, while another uses it and loses? What do you think differentiates the person who buys XYZ and wins from the person who buys the same XYZ and loses? The difference lies in the mind, plain and simple.
One of the most revolutionary axioms I have ever come across is this: "As a man thinks in his heart, so is he," and this universal truth is just as applicable to traders as it is to anyone else. Monitor the attitude of a winner and you will find a level of confidence and certainty that is almost beyond belief. And while most people will make the mistake of assuming that winners are confident and certain because they win, the truth is that winners consistently win because they are confident and certain.
No method, however sound, will work for the trader who mentally pictures himself losing before each trade is placed. And no amount of money, however large, will save the individual who secretly harbors the belief that "Whatever I touch turns to mush." As choice-making individuals, we must choose a winner’s mindset. You can never fail, or even feel like a failure, if you recognize the simple fact that you are not your results. You create them, which means that you posses the power to alter them if you happen not to care for them.
There is room at the top for all dedicated traders, but the first step is to actually believe that. The second is to start acting like it. Think the part, then act the part, and the rest mysteriously takes care of itself. But don't just take my word for it…try it.
By Tom Willard of Pristine.com