I want you to yourself a question:
“Am I currently doing everything possible to be the best trader I can be?”
I’m willing to bet that you are one of many traders who know what they need to do to trade successfully, but simply aren’t doing it.
So, why is it that so many struggling traders have the knowledge to trade successfully but they still do not make money consistently?
How can you take your knowledge and put it into action in the markets and finally overcome your inability to remain disciplined?
I will give you some insight into these questions in today’s post and hopefully you will then have an easier time reaching your full potential in the markets.
Anyone can learn to trade successfully if they really want it bad enough
The 1983 trading experiment by Richard Dennis and David Eckhart, known as ‘The Turtle Traders’, famously proved that trading could indeed be taught successfully to people with little or no trading experience.
Thus, you have the potential inside of you to trade successfully – it doesn’t take some special genetic gift of birth to trade the markets profitably. However, it is true that some people have an easier time with discipline and self-control than others, and these are two of the most important traits of consistently successful traders. But, that doesn’t mean you can’t develop these traits in yourself, it will just take you a little more work if you aren’t naturally inclined to be disciplined.
Successful trading is all about developing and maintaining the correct trading habits. The potential for you to make money consistently is inside of you, but you need to “unlock” it by staying consciously aware of your emotions as you trade.
Turning your trading knowledge into action
We’ve already discussed the problem that many traders face of not being able to act on their knowledge of what they need to do to trade correctly. Trading seems to be a lot like staying in shape. Most people know what they need to do to stay in good physical shape, but they lack the motivation to become and remain disciplined enough to develop the proper habits that make them consistently healthy.
Similarly, most struggling traders know what they need to do to start making consistently money in the markets, but they simply lack the necessary discipline to make it happen.
So, what are some things that you can do today to help jump-start your motivation to get and remain disciplined in your trading so that you can reach your full potential as a trader?
1) Start accepting that trading is risky and that you can lose money on any given trade. If you truly understand and accept that there is no such thing as a “sure trade” in the market, then you have no reason not to manage your risk effectively on every single trade you take, that is unless you really enjoy losing an emotionally painful amount of money on any one trade!
2) Apply an effective trading strategy that is not overly-complicated. Let’s face it, there’s a ton of trading systems and strategies floating around the internet that are anything but user-friendly. So, if you want to reach your true potential as a trader you need to employ a simple trading strategy that you actually understand and enjoy using, not some messy conglomeration of indicators that resembles a piece of modern abstract art!
3) You need to actually create a practical trading plan around the strategy you have mastered. If you do not create a trading plan that details all your trading strategies, money management, and entry and exit rules, there is no way you will ever pull together the discipline necessary to succeed in the markets long-term. Just like a business needs a business plan, you need a trading plan for your trading, and you need to treat it exactly like a business, because that’s what it is!!!
You would not gamble away your money for a business, so don’t gamble away your money in the markets, instead plan everything out and preempt all your actions in the market.
4) Once you have mastered an effective yet simple trading strategy and have a trading plan in place, you need to create a trading journal to track all your trades. This is essential to you reaching your full potential as a trader because you need to develop a track record that shows you your progress in the markets or lack thereof. This will also work as a self-accountability tool, because if you can manage to pretend that you are “reporting” to your trading journal as if it is your “boss”, you will create some accountability in your trading, and this is important for most traders since without a real boss breathing down their neck they have little reason to stay on track and motivated.
If you can manage to do the things discussed in the four points above, you have a very good chance at succeeding long-term in the market and in reaching your full potential as a trader.
However, keep in mind that these things are not going to help you if you only start them but don’t persist with them. You have to follow-through and give yourself some time to see your efforts pay off, forget about getting rich over-night, seriously successful traders have long-since figured out that the “get-rich-quick” mindset is simply not conducive to making consistent money in the markets.
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