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Loser's Mindset in Trading

Posted in Traders' Delusions, Submitted by Trading Critic on Sun, 2006-07-09 11:45.
A loser's mindset almost always leads to further trading losses. Don't be frustrated - always trade with a clear mind.

A loser's mindset leads to further trading losses. How does one get into a losing mindset? There are a few ways:

  • A losing streak: effectively wiping out your confidence
  • A negative attitude: do you believe in self-fulfilling prophecies coming true

As a trader it is inevitable that your account would be hit by losses. And when it does happen, you risk being succumbed by a loser's mindset. Especially when you hit a string of losses.

A negative attitude in anything almost always results in failure. A negative attitude is no excuse in the trading game.

The only solution is to step back. Take a breath. Wait until the nerves and the adrenalin rush flushes from your body (if you were in a losing streak). Reflect on the reason why you are trading (if you have a negative attitude). Review and reflect on the trade. And simply start over again taking on board anything you conceived from your reflections.

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