Developing a positive trading mindset is a vitally important part of becoming a successful trader. It can often be ignored, especially by new traders, who don't know where to start with this "fluffy" part of the trading jigsaw.
The affirmation or mantra is a simple and positive tool you can use to help develop a great trading mindset and it doesn’t require any complicated knowledge or a lot of time.
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Now, if you you are getting a bit of a reaction to the words “affirmation” or “mantra” just stick with me. An affirmation or mantra is just something you say to yourself.
We probably all have an idea of the kind of trader we would like to be and what type of mindset we would most like to develop. If 100 traders were asked the question “how would you describe the trader you would like to be?” the majority would agree on words such as:
calm
confident
poised
focussed
composed
alert
How can we foster those feelings of being calm, alert and confident in our trading?
Through practice and repetition and by telling ourselves we are that trader.
Words are certainly very powerful, but just using the words alone is not enough.
You can tell yourself you are calm until you are blue in the face, or write “I am calm” on notes all over your workstation, but you have to FEEL it deep down.
We can foster that feeling and learn to call on it anytime, through practice.
The easiest way to ensure we keep up the practice? Incorporate it into our routine. Do it whenever works for you, as long as you so it often.
Mornings are great but other times you could practice your trading mantra could be:
before getting up
while having a shower
while driving
before opening your charts
before placing a trade
last thing at night
Close your eyes, take 5 deep breaths, feel your body relax. Imagine yourself looking at the charts and say the word or sentence that describes the mental state you want to be in while engaging with the markets.
You can say whatever resonates with you, as long as it is positive and supports you in your trading. My favourite word at the moment is “poised”. I love the image of a super-cool trader watching calmly, then seeing an opportunity and acting with complete clarity and confidence.
So, I might just say “I am poised” while imagining myself trading, or “I am poised and wait calmly until the markets present me with an opportunity, then I act with confidence”.
There are endless possibilities:
I am alert
I trade from a place of calm confidence
I trade with ease and grace
Having a trading mantra and using it frequently can work wonders on your trading mindset.
So, fancy giving it a go? What will be your trading mantra this week?