Trading Psychology – How Much Money Do You DeserveIt is 9.47pm Singapore time and you are looking at your computer screens filled with price charts. The price dances and you are waiting for the formation of the signal.
Signal confirmed. You left click to buy. Order filled.
1 minute 39 seconds passed. Price shoots up. Your target price hit and you are out of the trade.
Profit: 800 USD.
It is a dream for many who work long hours in the office and not being able to make even half of what this trader made in less than 2 minutes. Is it really possible?
Yes it is. But what is the price this trader has to pay? Let’s look at the facts:
- Fact 1. The trader must have a trading strategy that he trusts 100% and had seen it work through vigorous testing and simulation trading.
- Fact 2. The trader must put in hours of hard work to practice executing the trade.
- Fact 3. He must believe that he is worth making that kind of money with such ‘little’ effort.
Do not be surprised by Fact 3. We all seem to believe that we are worthy of making a lot of money, but deep inside, it may not necessarily be true.
A trader X came to me to learn my trading course. He spent hours doing simulation trading, and he was good at it. His practice result was very good and finally, he thought he was ready to take LIVE trades and make the money he deserves.
The first few days of his trading surprised him. He did not click at all. He finally came to me and told me his problems which I summarize as follow:
- For him to make money, doesn’t someone need to lose?
- He usually needs to work 8 hours to make the same amount of money he can make in a single trade.
- He was not doing anything productive at all. So why should he be paid?
X has money beliefs issues. He did not think he deserves the money and these beliefs manifested in his trading. I convinced him that he had put in the hard work and traders are helping to regulate the liquidity of the market. After he accepts that traders are paid for making decisions, he was able to perform his tasks. Today, X is a successful trader and is enjoying the fruits of his labour.
Having a good trading strategy and prepared to put in a lot of hard work is only part of the deal in becoming a profitable trader. The mental resolution to succeed and coherent self worth is equally crucial to a trader.
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