Traders and their mindset
As a trader, you have a mindset to make money. We all think that way. I am talking about your mindset, when you sit at your charts and start your trading session. That was bold. However, it is so important to be in the mindset or, as we here most is the Zone like, a professional athlete. I am going to talk a lot about different aspects of this so you might get some relief of the pressure of trading.
Hello, Traders. My name is William Gilday. I have been trading part-time since 2006 and in 2008 I went full time. I am an active trader who trades all three sessions as I am an expat who lives in Thailand.
Your trading space
The space where you trade is very important. Myself I always like a quiet space. My «trading desk» as I call it. There really needs to be no interruptions or noise like TV, radio and most of all — people talking.
I understand that we all have family or significant others. They have to understand that when you are trading you are working and risk. Or we can say that your hard-earned money is at risk. Your work space has to be comfortable and peaceful. As a trader, you will have to find that in your situation.
The next very important thing is brain junk. We have to have a clear mind while trading. Let’s say you are trading part-time and come home from work and get to trading after a long day. That is fine and you are ready to trade. However, what if you had a bad day at work or stuck in traffic for two hours and get home frustrated? This is an example of brain junk and we must get rid of this before we go to our charts.
How I do this and how you do this is a personal choice. Myself I go to the coffee cafe and just have a mocha for 30 minutes and relax or just go outside for five minutes. Now I am ready to go to the trading desk and start trading. Everybody has their own way to do this.
About The Question
The next thing to talk about is the question all traders ask themselves. So you make your trading analysis and enter your trade. And now, as you are in the trade, you are at the edge of your seat and your hands are sweating. You ask yourself, «Am I the only one feeling this way?» No, you are not alone. There are more traders than you can imagine who trade this way. From my experience, traders who scalp do this the most. Let us now look at some reasons this happens:
- No trading plan
- Chasing price entering on the big red or green candle
- You have too much risk on a trade: your trade size is too big for the capital on your account
- Revenge trade: you are angry over the last trade that you made
This is a disaster if you are in this position and you should change it if you want to stay in this game for a long time. Remember, trading is a journey not a race. And this journey should be enjoyable even when we lose a trade or two.
I have to tell you I think about trading all the time. I always look at the market asking questions to others or myself. My state of mind is at ease most of the time and if it is not I have this saying — «Make a move and change the thought.» I live in a condominium and I can go downstairs to the coffee shop or a pool, look around and go back to my condo and continue. And it works. It only takes like ten minutes and I clear that brain junk and now happy to be back at my trading desk.
Prepare doing nothing
You see as we grow up and become adults, we are taught that you have to go to work. And by work we understand physical labor or at least actual doing of something. Trading is out of this norm because yes, we go to our computer and open our charts, make analysis and a thoughtful trade plan. But afterwards we have to wait for the price action to come to our entry and it can take hours to get triggered into the trade. We were not taught how to be at work and not do anything for hours.
I have to tell you that I learned this from my own experience and it took me years of trading before I got it. When I started trading I was told to have something to do at my desk, while waiting for trades. I have to say I thought they were crazy. No, I was crazy not to listen and made stupid trades and lost a lot of money chasing trades. Today I have something to do. I do not stare at charts for hours actually. I have a hobby — I love aviation and I fly a flight simulator all day and it keeps me busy. It is just a few steps from my trading desk so I am there when needed.
The last issue I want to talk about is strategy which will make your trading more comfortable. Whether you are a new or an experienced trader, find a strategy that you enjoy and stay with it. Today I have to tell you that I learned my strategy in 2007. I am a pullback trader and I use price action and levels in my trade plans. I have tweaked it some but very little in over ten years. This will give you peace of mind and your Mindset will be at ease.
Traders thank you for your time and I hope you will have peace of mind while you trade with just some little changes.
I wish you all trading success!
William K. Gilday
FXCL Forex Market Expert.