Many will tell you that the two most important elements to becoming a successful investor / trader are knowledge / skill and discipline.
Whilst these are absolutely essential, there is another very important skill you also need to develop — a “success mindset” which gives you the confidence to go forward and make sound decisions.
Before putting your money on the table, you should be undertaking appropriate analysis and apply sound risk management practices.
However, no matter how well you apply these principles, there is always going to be an element of risk involved in what you’re doing and the result you expect (i.e. a gain) will sometimes not materialize.
You must accept that investing / trading is a numbers game — few professional investors achieve more than 80% success on their trades and the average is probably around 60%.
One way to overcome this is to develop your ability to flip the switch— to get those negative thoughts out of your head and move on to the positives that surround you.
If you don’t “flip the switch” after a loss (or two), you may find yourself in a position of fear — too scared to make the next trade which could be the one that recovers all your previous losses plus provide a handsome return.
Or you could proceed with your next trade with a clouded mindset – you may start doubting your Trading Plan and then make decisions that counter you’re structured strategy – because those negative thoughts pervade all.
Theoretically, a properly constructed Trading Plan will help you keep all on track. But the mindset has to be right as well … or else you may veer away from the disciplines you set in your Trading Plan without realizing it. You’re confidence is out the door — and it can impact on your application of the discipline you must apply to your next step.
Doubting your Trading Plan – particularly if it has proven successful to date – can be hazardous.
The ability to “flip the switch” and get yourself back on track is actually a life skill we all have to develop and continue to practice.
The world’s leading proponent of this skill is Dr. Robert Anthony, author of 15 books with sales of over 4 million copies and the best selling “Know How To Be Rich” audio program which is delivered through online download. “Flip Switch” is actually one of several techniques he teaches in this program.
Dr. Anthony’s technique requires only 17 seconds each time a negative comes into your mind! Repeat it each time a negative arises — you won’t need more than 10 minutes a day to keep yourself on track and achieve the success you’re after.
This is a life skill … and it’s just as important when investing / trading as it is in any other endeavor in life.
All successful traders have mastered this technique – some naturally and others through training. They are able to disengage from all else happening around them and focus solely on their “trading business”. And when focused on their business, they keep a clear head properly analyzing all that has transpired before and how they should move forward.
To your trading success!