The Mindset of a Professional Gambler

July 22, 2022 by Learningsharks

Psychology and Risk Management

• What to expect
• Risks
• Position sizing
• illusion of control
• Accepting critisism
• Paralyzed by fear
• Loss is a feedback, not a failure
• The flexible trader
• Focusing on the positive
• Short straddle
• The dynamics of greed
• The herd mentality
• Notes

The “established” investment community has many people who are keen to clarify that investing is not gambling. Gambling carries a lot of bad connotations in the popular mind. When the topic of professional gambling is brought up, the majority of people immediately picture compulsive gamblers who recklessly blow through their wages and other essential funds for their daily survival. However, gambling is not always “evil” or “bad.” In fact, traders who make a living at it are simply gamblers. It all comes down to developing the proper mindset—the cool, analytical mindset of a seasoned gambler.

Trading is a sort of gambling, but it’s important to distinguish between obsessive, recreational, and professional gamblers. Gambling addiction is present in compulsive gamblers. They play games of chance to feel elated and rush. They have no discipline at all. Obviously, a compulsive gambler or trader has no place in the trading world. However, a lot of people mix up compulsive and professional gamblers, despite the fact that they are diametrically opposed. Professional gamblers and traders may engage in risk-taking, but they do so with caution. They first search for high probability trade setups before placing a wager.

Social gamblers, sometimes known as amateur gamblers, only gamble for fun and leisure. They set aside a set sum of money for gambling entertainment and use it just like they would for a show, concert, sporting event, or other enjoyable activity. Fun is fun, thus it makes little sense for a social gambler to construct a thorough plan for taking down the casino or meticulously minimising risk, for instance, at the blackjack tables. Gaining excitement and holding out hope that one will get Lady Luck on one’s side and win a large prize are both fun aspects of social gaming.

However, a lot of new traders make the error of viewing trading as amateur, sociable gaming. Trading is seen by them as fun. This approach to trading is fine if you have money to burn, but the majority of us want to make money. Furthermore, a social gambling mentality can quickly deplete your trading account. Changing this mindset is essential if you are serious about trading professionally. Although you might like trading, the primary goal of professional trading is to make money. That entails developing effective trading techniques as well as rigorous risk management, self-control, emotion regulation, and the ability to execute trading plans when in a peak performance level.

Don’t engage in deals only to feel excited. Look for trade setups with a high likelihood of success, then wait until you discover one where you can profit. The phrase “you’ve got to know when to fold ’em” is used by gamblers. When it comes to risk management, you must also behave like a seasoned gambler. Trading involves patiently waiting for the odds to change in your favour, just like a seasoned gambler. A professional gambler takes extremely little risk on each throw of the dice in order to prepare for and stop a losing streak.

It helps to think about trading as high-stakes gambling. It gives it the correct context. Instead of being a novice player, you are the casino who meticulously evaluates the odds, ensures that they are in your favour, and uses the “law of averages” to your advantage to make sure that, over a large number of deals, you make a sizable profit. You will trade profitably and regularly if you give up an amateur mindset and adopt a professional one.

Take Responsibility and Take Control

July 22, 2022 by Learningsharks

Psychology and Risk Management

There are basically two ways to comprehend and interpret occurrences in one’s life, according to renowned psychologist Dr. Julian Rotter: Either one can assign the reason to internal factors, like hard work, aptitude, or ability, or one can ascribe the cause to external forces, like luck or fate. One tends to assume full and complete responsibility for an outcome when one searches for internal forces. One may remark, “I made a profit on the trade because I was well-prepared, patiently awaited the perfect indications, then traded my plan,” as an example. That is a justification that relies on internal factors.

For a winning trade, it’s easy to explain the outcome with internal forces. We have a natural tendency to build ourselves up and enhance our ego when we win, so it makes us feel good when we do well and believe it is due to our talents and skills. But what about a losing trade? When we lose, it’s also due to our talents and skills, but in this case, it may be a lack of talent and skills. Such a possibility is harder to accept. When faced with a defeat, most people suddenly switch from looking for internal forces to looking for external forces: “The market conditions changed too quickly.

Once more, price manipulation is being done by market makers. I should not have followed that analyst’s ignorant advise. I had bad luck. When a loss occurs, it is simpler to make an excuse than to accept complete responsibility. During these times, the majority of us have a tendency to view the world from a self-serving perspective, attributing our successes to intrinsic personal traits while attributing our failures to environmental factors. But there are benefits to going against our natural inclinations and constantly accepting full responsibility for both our victories and failures: One feels powerful and in total control.

Participants who tended to attribute life outcomes to internal forces, such as the psychological advice we offer in these Innerworth daily columns, were found to be more satisfied and able to apply the self-help information to change their lives than participants who tended to look for external explanations, according to a study on self-help instruction. They were able to apply the self-help advice to them more readily, which gave them a sense of empowerment and control over their life. By embracing accountability for one’s actions, it is possible to take complete charge of one’s life and implement significant changes.

All energy is concentrated on improving performance and learning new skills rather than always searching for justifications and attempting to lay blame on external circumstances. Contrarily, traders who don’t accept full responsibility often focus a large portion of their psychological energy on defending themselves against their errors. They tend to be readily influenced due to a constant need to maintain their egos rather than building an accurate, impartial picture of the markets. Focusing on external factors for failures may make one feel better in the moment, but it will ultimately have a negative impact on performance. Over time, abilities stagnate and scarce psychological resources are wasted on ego-protection. To identify an outside cause for failure needs effort and time.

It can be challenging to accept complete responsibility, especially after an unsuccessful trade. Looking at one’s flaws and limitations is difficult. However, the long-term benefits outweigh the momentary discomfort felt while considering one’s restrictions. You will ultimately obtain power and control if you examine your shortcomings, accept accountability for them, and accept complete responsibility. So assume complete accountability and exercise control.

Fear of Success: Is it relevant for Traders?

July 22, 2022 by Learningsharks

Psychology and Risk Management

Fear of Success: Is it relevant for Traders?

In the 1970s, psychologists researched “fear of success,” a subject that attracted a lot of media attention. Some trading websites nowadays are debating if traders have a hidden dread of success. Does success frighten some traders? We don’t have a conclusive response to this topic because there haven’t been any published research on trading and fear of success, but we can examine this matter using data from our Innerworth archive.

What is the underlying science behind the fear of success? Where did the concept originate? In a classic study, researchers showed a group of women a hypothetical situation in which a young woman student excelled in professional school, placing first in her class. It’s interesting to note that female participants believed that achievement would bring negative implications for young women. These women participants, according to “pop” psychologists of the 1970s, exhibited a “fear of success” because they anticipated negative outcomes to come with success. It’s possible that this study’s findings were limited to a specific group of people who lived in a specific era. Perhaps today’s women would feel differently.

Nevertheless, the investigation goes on. Researchers in psychology have examined the fear of success in numerous populations over the years. Fear of success is linked to negative feelings and low self-esteem. Success fear appears to affect women and minorities more frequently than Caucasian men. The general notion is that some social groups may be told they “should not go where they do not belong,” and that if they do, they would suffer negative effects like having to make new acquaintances, which could be challenging, or fearing they won’t be able to handle the responsibilities of a new role.

Some traders might think that failure could come after their professional accomplishment. If they are wealthy, they might desire to relocate to an affluent area or find new pals who are more compatible with their increased status and income. Making these modifications could be challenging. It’s much simpler to feel at ease and remain where you are. Others could be concerned that if they experience significant financial success, they would grow accustomed to the comforts of wealth only to lose their money and be forced to return to a humble way of life. It is said that it is preferable to never have been affluent at all than to become wealthy and then lose everything.

We polled a selection of our subscribers to get their thoughts. Here is what we discovered. 90% of the respondents in our survey believed they deserved the income they generate as traders. It appears that not many traders had success anxiety. It could be as small as 15%. For instance, just 12% of respondents believed that others would try to take advantage of them if they made large earnings. Only 10% of respondents said they believed their lives would alter negatively if they became successful traders. Only 12% of respondents believed that their rising riches would make others envious or dislike them. Over 80% of our subscribers, according to estimates based on additional questions we asked concerning fear of success.

As you might expect, trading can be hampered by a fear of success. A continuous drive to succeed is necessary for investment success. However, secretly believing that if one succeeds, unexpected catastrophes will happen is sure to obstruct the development and maintenance of a peak performance mindset. Thankfully, not many of you appear to be afraid of success. But for those that do, learning about this problem is worthwhile. You will be cautious if you think that profitability heralds disaster. You won’t give it your all, and you’ll probably fall short in the end. Don’t let your fear of success rule your life. Recognize your fears and overcome them. Long-term profitability will increase for you.

Building Up Frustration Tolerance

July 22, 2022 by Learningsharks

Psychology and Risk Management

In the world of trading, failures are more common than not. Finding trustworthy trading techniques is difficult, and usually, a tempting strategy ends in failure. Losses and other setbacks can make you feel anxious and frustrated. But the successful trader is unfazed by these failures. Trading winners don’t run from difficulties; they embrace them.

It’s critical that you can handle irritation. A clear, practical strategy must be in place for dealing with setbacks in order to prevent psychological damage and chronic stress issues. Your body and mind have a certain amount of energy, so if you can’t manage your aggravation and worry well, you’ll soon run out of it. Your capacity to concentrate and think clearly will be lost. But you may increase your ability to handle frustration by following a few particular precautions that will prepare you for a flood of trading failures.

People with low levels of frustration tolerance frequently think they ought to have zero obstacles. However, failures are an inevitable part of life. Indeed, you should prepare for failure if you’re aiming to succeed in a difficult industry like trading. Challenges and failures can be seen as a part of life’s pleasure and stimulation rather than as dreaded occurrences. Instead of seeing a trading defeat as a frustrating obstacle, you should consider it as an opportunity to learn and advance your trading abilities. Simply altering your perspective on potentially upsetting circumstances can alter your tolerance for them. You’ll feel less irritated if you anticipate them and understand that they are natural occurrences rather than a catastrophe.

And rather than passively feeling paralysed by them, you’ll try to come up with innovative ideas for how you may use the setbacks as a fresh start that can advance your trading abilities. Consider failures as opportunities to expand your market knowledge and improve your trading techniques.

It is crucial to adopt specific preventative measures in addition to a general mindset modification in order to tolerate dissatisfaction. The most crucial stage is to strengthen physiological defences. When we are exhausted and worn out, it is challenging to deal with frustration. We can handle irritation better by obtaining enough rest, and especially sleep. Your body can develop a natural defence against frustration with the aid of regular exercise and healthy nutrition.

You’ll also try to think of creative methods to use the failures as a fresh start that could lead to greater trade abilities rather than letting them passively paralyse you. Use setbacks as a chance to gain new market knowledge and sharpen your trading skills.

In addition to a general mindset change, it is important to adopt other preventative measures to withstand frustration. The most important step is to build your physiological defences. It is difficult to handle frustration when we are worn out and fatigued. By getting enough sleep, especially at night, we can better control our frustration. With regular exercise and a nutritious diet, your body can naturally develop a defence against irritation.

You could wish to compile a list of profitable deals to refer to when you are particularly defeated in order to cope with them. Understanding that, even though outside factors may thwart your plans, you have the power to decide whether they will affect your mood is the key to coping with frustration. You may either prepare for setbacks, see them as challenges and learning opportunities that will help you advance your trading abilities, or you can choose to feel defeated, angry, and upset. You’ll be able to deal with setbacks more readily and use them as stepping stones to greater levels of trading success the more you can accept that they are an inevitable part of trading.

Market Frustration: Stay Calm; It’s not Personal

July 22, 2022 by Learningsharks

Psychology and Risk Management

For two months, rohan had been holding a long position in a stock. He anticipated a product announcement would result in a slight price increase, but nothing happened. The stock didn’t sell like hotcakes despite the product receiving excellent reviews and being in high demand. Although there was substantial support, the price had barely altered. Rohan made the decision to just give up, sell, and move on rather than wait another day. But the price rose four points the following day. Rohan is currently irritated. He is enraged at both himself for losing patience and selling too soon and at the markets for defying his trading strategy. Ever have Rohan’s feelings?

Even if you had a good trading strategy, the markets weren’t on your side. Your viewpoint may play a big part in how you handle irritation. It’s critical to make sure you have cognitive techniques that will enable you to deal with setbacks gracefully.

Some traders make the markets their own. They automatically perceive the markets as people, as opposed to seeing them as impersonal entities. They begin to believe that they are personally connected to the markets. They generally think they have a hostile relationship with the markets because the markets typically don’t cooperate with their trading strategies. Due to their frustration bias, some people are more prone to feeling frustrated than others. People who have a frustration bias sometimes believe that others are trying to harm them in real-life interpersonal interactions. They make the assumption that people are trying to harm them, as though they are experiencing a paranoid episode. They also apply this bias to markets.

It’s crucial to neutralise your frustration bias if you have one. Recognizing that you frequently perceive personal slights when none exist is the first step. Although there are different types of individuals at the marketplaces, they don’t know you. For instance, they aren’t doing maliciously when they refuse to purchase when you ask them to. It’s critical to keep in mind that it’s not personal. The second crucial action to take is to prepare for unfavourable circumstances and setbacks. When caught off surprise, people are very angry. Because Tom, for instance, didn’t anticipate the stock price to rise the day after he sold his position, he was extremely upset.

Allowing yourself to make errors is another tactic. Tom was frustrated because he put too much pressure on himself to trade flawlessly. But he would have felt lot better if he had acknowledged that both he and everyone else made errors. The distinction is between thinking, “I was stupid to sell too early,” and “I sold too early, but I fairly thought that I had waited long enough.” You are sometimes correct. Sometimes you are mistaken. I was mistaken. It was neither the first nor the last instance. I’ll simply put it behind me and go on.

You are human. The markets aren’t. Don’t personalize the markets. Look at them objectively. The market action won’t always match your expectations. That’s all right. Take setbacks in stride. If you dwell on them, view them as mistakes, and mull them over, you’ll feel frustrated. But if you expect them, and accept that no one is perfect, you’ll feel relaxed, free and creative. And trading in a cool and logical state of mind will help you trade profitably.

Organize your Workspace and Relieve Stress

July 22, 2022July 22, 2022 by Learningsharks

Psychology and Risk Management

Organize your Workspace and Relieve Stress

Trading the markets is a stressful occupation. The markets are unpredictable and chaotic. No outcome is a certainty, and many times, when it seems as if you know where the market is going, you discover you’re wrong. It can be extremely confusing and disorienting. And this confusion and disorientation can produce stress. Winning traders must do whatever they can to remove some of the confusion and reduce stress. One of the best ways to relieve some of the stress, and put order into a face-paced unpredictable environment, is to organize your workspace.

It’s a good idea to organise your office now that the new year will begin the following week. Make place for the new by getting rid of the old. Old documents and clutter can be distracting. You may feel as though the clutter is encroaching on you and limiting your options if you have piles of newspapers you’ll never read. It typically gives you more psychological space and renewed creative vigour to clear some of the clutter and make some space. You experience more breathing room. Some traders might be the Oscar Madisons of trading; they might love a disorganised workspace and believe that organising it would be more stressful than giving in to the chaos.

In contrast, a tidy desk is less distracting. It’s crucial to keep your attention on your screens when trading. Too much clutter in a single area or on a person’s desk can divert attention from keeping an eye on the current trade. Many people have a sense of empowerment while working in a setting that is neat, uncluttered, and organised. Even though they may not be able to influence the markets, at least they have mastered their environment and reduced any potential psychological effects it might have on their awareness and capacity to analyse market situations with objectivity.

While organising your workstation does require some work, the peace of mind you’ll achieve makes the effort well worthwhile. Getting rid of outdated and useless information is the first step in any business. The hardest thing is this. We accumulate books and papers because we anticipate using them. However, we frequently amass so much things that its actual contribution is little. It will merely take up important workspace and we won’t have time to read it all. But discarding it is difficult. Throwing these things away discreetly implies that you wasted your time assembling them because it took time and effort. However, much of it can be thrown away.

Creating a loose filing system can be beneficial. It is not necessary to have folders for each topic and labels for each folder with specific categories put on them. Sometimes all you need to do is place the documents you need for a specific work or project in a sizable, appealing box. The boxes can then be arranged in a corner of your workplace or, if they continue to be a distraction, in the garage. But it’s crucial to remove it from your desk so that it doesn’t obstruct your workspace or, more crucially, your thinking.

Getting rid of clutter and maintaining a minimalist workstation can significantly reduce stress. The markets are out of your control, but by keeping your workspace structured, you can manage it. Therefore, get rid of everything old that is taking up room as the new year begins. You’ll be pumped up and prepared to take on the challenges the coming year brings.

Free Up Psychological Energy

July 22, 2022 by Learningsharks

Psychology and Risk Management

The amount of psychological energy you can dedicate to trading has a cap. And when you let too many problems to linger in the back of your mind unsolved, you lose some of this finite energy. The more problems you put off dealing with, the more they pile up and the less mental energy you’ll have left over for trading. These conflicts are likely to erupt unexpectedly if they are allowed to build up and go unresolved. You can experience some conscious disagreements throughout the course of the day. Other conflicts may not often cross your mind since they are unconscious. But psychological problems are almost always present, whether they are conscious or not.

It’s crucial to recognise tensions and conflicts and put in a lot of effort to settle them in order to free up psychological energy and resources. By avoiding stress, you can liberate up psychological energy. Stressful feelings can accumulate, and if they are not sometimes discharged, one may become overwhelmed by stress. Although you cannot entirely eliminate stress from the trading environment, you can stop yourself from being unduly worried and afraid by creating and adhering to a stress management plan. Avoiding caffeine, exercising frequently, limiting daily inconveniences, and seeking out social support are some helpful methods to handle stress.

It’s not helpful to pre-elevate your nervous system and have a greater sensation of tension when trading because it’s already stressful enough. Exercise on a regular basis might also help to lower tension. A regular workout routine ensures that pent-up frustration and anxiety are released and do not accumulate to suddenly influence subsequent trading decisions. Tension builds up during the trading day. Reducing stressors in your environment is also crucial.

Daily problems like being pressed for time, stuck in traffic, or having too much on your plate can cause psychological tension and linger in the back of your mind. Reduce these inconveniences as much as you can to release the strain. Whatever method you use to deal with daily annoyances, don’t ignore them and don’t pretend they aren’t significant enough to address right away. Over time, they can add up and put a lot of burden on you.

A good technique to deal with stress is to ask friends and family for social support. Individuals who are under a lot of stress who have someone or several people to vent to are better able to handle the pressures. Sometimes all it takes to release stressful emotions like anger, fear, and frustration is to feel hopeful, in control, and prepared to take on new stressors with renewed enthusiasm. However, it’s crucial to keep in mind that relationships have two sharp edges.

Although caffeine typically elevates your nervous system to the point of having you hyper-alert to the smallest type of stress, it also helps many individuals wake up in the morning.

Under the correct circumstances, they can aid in stress reduction, but they can also be a significant source of tension. It takes special people to be an important part of someone’s social support system. A person’s social support network should ideally consist of good listeners who genuinely want to learn about their particular issues, validate their emotions, and assist them in de-stressing. While some relationships invigorate us, others make us feel anxious and frustrated. Since not everyone in a trader’s social support network is familiar with or supportive of trading, this might be especially true for traders.

Consider the following scenario: A loved one may not be supportive of trading and may constantly cause worry by asking, “How much did you lose today?” or “When are you going back to your regular employment after giving up trading?” Similar to this, a conservative, risk-averse friend would not want to hear about trading activities that are quite dangerous. In these situations, these partnerships are at best unsupportive and at worst extremely stressful. Finding the appropriate social support is so crucial for your psychological well-being.

It’s crucial to trade with the right attitude. When your mind is frantically consumed with conflict and tension, you’ll find that a significant portion of your psychological energy is spent, making it difficult for you to focus and concentrate when you turn your attention to trading. However, when you reduce stress, you free up psychological resources and can get rid of the disputes and stressors that are lingering in the back of your mind. The high performance attitude will help your trading.

Free and Easy Trading

July 22, 2022 by Learningsharks

Psychology and Risk Management

You make routine judgments throughout the day that don’t really matter to you. Choosing which route to take, where to turn, and when to stop for gas are just a few of the choices you must make when you transport your children to school. Each choice is made without much consideration. You might opt to visit the grocery store at a later time. You select the dinner menu and determine your budget. Do you fret over these routine choices? Most likely, you don’t. Just why would you? Why all the fuss? The decisions’ effects are essentially nonexistent. But don’t say that to a person who suffers from OCD.

They view the importance of these choices from a different angle. For those with this condition, even seemingly unimportant daily choices have a tremendous impact. Don’t you feel relieved that you do not suffer from OCD? However, if you are a novice trader who struggles to make trading judgments, an experienced trader might assume you suffer from an obsessive-compulsive disease of some sort. Because you are impatient or frustrated, you sell early or forsake your trading plan, yet experienced traders have no trouble making what they view as routine decisions. To them, it’s just a decision that needs to be taken; it’s not a huge thing. Isn’t it lovely to trade in such a liberated and simple manner?

It is far preferable to adopt a more impartial, objective stance. How do you manage it? First of all, resist the need to dwell on or become fixated on a single trade’s outcome. Consider the big picture. If you have a trading technique that has a high probability of success, even if you might lose one transaction, over the course of several deals, you will come out ahead. Instead of making a small number of important trades, successful traders prepare to execute many smaller trades. They are aware that not every trade must be profitable in order to raise the equity in their accounts as they trade.

Your total achievement is what matters. It relieves some of the pressure to remember this. Second, effective risk management is crucial. Only a small portion of a trader’s trading money is at risk in a successful trade. Limiting the risk on a single trade also eliminates some of the feeling that each trade must be successful, which lessens some of the significance for the trader.

It’s not necessary to give a trade a lot of personal value. What’s the big deal if you only risk a certain amount of money on a trade, limiting the actual repercussions of the trade as a result? Trading should be simple and free.

Trading offers Freedom

July 22, 2022 by Learningsharks

Psychology and Risk Management

Making money is a constant goal when trading the markets. There is always too much to do and never enough time to get it all done. The majority of traders share your fear of passing up possibilities. You are aware that it is challenging to withdraw money from the markets and that in order to maintain your position, you must continuously improve. Why do people in this line of business put in such long hours? Most people would claim it’s for financial gain. Is it not done for financial gain? Many traders assert that there are additional factors. Feeling that you have attained success in a field where few people last a lifetime is among the key causes.

A strong motivation might be a feeling of independence. Don, for instance, stated in an interview with Innerworth employees, “When I made the decision to trade full time, I did it for a few reasons. One was for independence and freedom… Although there were some financial benefits to trading, I wasn’t in it for the money. I took action for my freedom.

The independence that trading gives is taken for granted by many traders. There is a strong drive to keep up with the person next door in a competitive environment where most people determine their self-worth based on how they compare to others. One asks, “How well am I doing?” repeatedly out of habit, and that inquiry generally prompts, “How well’should’ I be doing?” The desire to succeed is difficult to ignore. The media constantly bombards us with images of success: “Buy a sporty, brand-new sports car and wow the neighbours. Put on the newest luxury clothing and watch as people stare as you pass.

The idea that you must have more than your friends and neighbours in order to be valuable as a person is implied in all of these statements. However, the pressure to succeed can make you feel confined. You will feel the strain and it may erode any freedom you may be experiencing if you are under pressure to earn enormous profits. Instead, aiming for moderate goals is considerably more beneficial. It supports your ability to handle the strains and stains of trade.

When you look at it that way, you can really get perspective because you understand that you don’t have to make everything in one day or one trade. ” When you organise your daily tasks, everything will look rational and you’ll feel liberated. So don’t put yourself through stress by attempting to accomplish seemingly unreachable ambitions. In the end, you’ll find that you can trade profitably and take advantage of the freedom trading gives if you think modestly and create realistic strategies for accomplishing them.

The Right Frame of Reference

July 22, 2022 by Learningsharks

Psychology and Risk Management

The Right Frame of Reference

When they first begin trading, many new traders experience frustration. It’s normal to hear a new trader lament, “I have no idea what’s wrong. Every chance I have, I research the markets. Even when I place transactions when the market is ideal, I consistently fail to turn a profit. However, one can question whether enough time and effort is put into trading. How much actual time is invested? How many transactions actually take place? These questions have very individualised answers. Some inexperienced traders may only have a few hours a day to spare.

They must then keep an eye on the markets, search for excellent stocks to trade, and actually carry out trades under perfect circumstances. Is this sufficient time? It varies. It will be adequate if you have a sizable account and don’t require a sizable profit. However, what if you just have a tiny trading account and little free time but still want to make a sizable profit? In that situation, you might be being overly optimistic. Successful traders operate within a grounded reality. They don’t attempt the impossibly difficult.

As with any difficult undertaking, success depends on investing the time and effort required. The amount of time and effort victors invest is typically what separates them from losers. According to studies, unsuccessful people have two key flaws: they lack an appropriate frame of reference and are frightened to precisely evaluate how much time and effort they put into a project. In other words, individuals mistakenly believe it to be simpler to accomplish a goal than it actually is. Despite the fact that they are far from doing enough, they mistakenly believe they are investing enough time and effort.

Trading coaches describe a similar phenomenon among novice traders. Many novice traders treat trading as a hobby rather than a serious business. That’s fine if you view trading as merely recreational gambling, but if you expect to make reasonable profits from your efforts, it is necessary to take things a little more seriously. Trading is a skill, just like a skill that professionals, such as doctors or lawyers, develop. Developing a high level of skill takes time and a heroic effort. It often takes several years to develop the skills of a seasoned professional, and that is also true of trading.

You must get experience with all of those factors in order to earn in a variety of market circumstances. Furthermore, no trading plan is totally infallible. You must consistently create fresh tactics and plans, then test them in various situations. To trade skillfully, flexibly, and effortlessly requires experience. To develop such talents, a hobbyist approach will fall short.

You need to have a realistic frame of reference if you want to advance from the position of an amateur hobbyist to that of a master trader.

You must be willing to approach the growth of your trading talents in the same way that other professionals do. Consider your life as working your way through undergraduate and graduate studies if you must work a normal job to cover your expenses. It entails rearranging your priorities and committing firmly to improving your talents. It will need numerous hours of research and instruction from reliable sources. Additionally, being realistic is crucial. The “graduation rate” of new traders to seasoned traders is low, so if you want to be one of the select few who succeed, you must accumulate as much experience as you can and make whatever sacrifices are necessary.

So don’t let anything stand in your way of being a master trader. Spend the required time and effort. Long-term trading success will be your reward in the end.

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The Mindset of a Professional Gambler

Psychology and Risk Management

Take Responsibility and Take Control

Psychology and Risk Management

Fear of Success: Is it relevant for Traders?

Psychology and Risk Management

Fear of Success: Is it relevant for Traders?

Building Up Frustration Tolerance

Psychology and Risk Management

Market Frustration: Stay Calm; It’s not Personal

Psychology and Risk Management

Organize your Workspace and Relieve Stress

Psychology and Risk Management

Organize your Workspace and Relieve Stress

Free Up Psychological Energy

Psychology and Risk Management

Free and Easy Trading

Psychology and Risk Management

Trading offers Freedom

Psychology and Risk Management

The Right Frame of Reference

Psychology and Risk Management

The Right Frame of Reference

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