The trading business revolves around three main things:
The Stock Market can be a very emotional environment. Therefore, your mind MUST be focused and clear, otherwise, you will get taken advantage of time after time.
Part of being a successful trader, for the long-term, means having a solid game plan and instilling the discipline to follow it.
The Stock Market is driven between two powerful forces: GREED and FEAR.
When you have instilled a strong mindset, you will be able to understand when you need to press your bets and pull back when things are not going your way. When your “trader psychology” is not trained at an optimal level, you will become greedy when you should be fearful and vice-versa.
You will turn yourself from an amateur to a professional trader when you train your mind to work and function like a successful trader!
Instead of trading on a whim and putting on random trades that you think will work out, you must follow a strict set of trading rules and have a money management plan and trading system in place to manifest your goals. Once this happens you will start to think in terms of risk-reward ratios and probabilities, and you will not allow emotions to get in the way of your success as a trader.
“Trading in FLOW” is an expression I often use to explain the power and importance of having a clear and focused mindset. This mindset will aid you in generating consistent profits in the Stock Market by utilizing the present opportunity flow –aka: BEING IN THE ZONE!