Trading in the right frame of mind is frequently a need for success as a trader. Trading psychologist Dr. Van K. Tharp, founder of the Van Tharp Institute and author of numerous best-selling books on trading psychology, outlines three mental states that could influence your trading strategy. Traders transition from a “having” state of mind to a “doing” state of mind as they gain expertise trading the markets. But when they get to a “being” state of mind, they become profitable. Which mentality best describes your trading?
Many traders begin their careers with a mindset that prioritises “having.” They are preoccupied with profits and what they may buy with those profits rather than concentrating on how to trade in harmony with the markets. The primary objective is to make money, which can then be utilised to buy desirable items like a flashy red sports car, a roomy, opulent home, or a sizable collection of upscale clothing. They think that having enormous financial success will be the answer to all of their issues. Trading is more than simply a career; it is their last resort. Despite the fact that many traders are driven by financial gain, concentrating on what you might acquire as a result of your profits has drawbacks.
A trader’s mentality eventually shifts from “having” to “doing.” When a trader is in a “doing” frame of mind, their attention is directed toward understanding trading strategies and when they work and when they don’t. Dr. Tharp asserts that traders in the “doing” frame of mind continue to prioritise performance problems. What can this trading strategy do for me, they enquire? They are worried about how the technique can make them wealthy. Trading in the “doing” frame of mind is about evaluating the strategy and pondering if it is “working” rather than becoming involved with the markets.
However, picking a certain approach and applying it at random is not how trading is done. Developing your trading abilities is necessary to become a successful trader. You must cultivate your intuition by engaging in trading using a number of strategies under a variety of market circumstances and figuring out how the right strategy fits with the ideal market circumstances. Trading in a “doing” state of mind is essential for achieving market mastery, despite the fact that it rarely results in long-term profitability. You acquire the knowledge necessary to trade naturally and with a top performance attitude throughout this phase.
The “being” state of mind is the ideal mental condition for successful trading. A trader in the “being” frame of mind is completely tuned in to the markets rather than concentrating on results. He or she trades in time with the movement of the market. Trading the market and accepting it on its own terms are firmly committed to. A trader who is focused on trading right now intuitively recognises successful setups and trades them with ease. You can trade with a “being” frame of mind with enough practise and experience, albeit it might not happen right away.