Calm Trader: Win in the Stock Market without Losing Your Mind

Developing a winning trading system that fits your personality and comfort level is crucial to your success, and creating a trading plan that you can believe in is imperative. Developing a trading plan that keeps you as stress-free as possible should be your number one priority before you make your first trade.

The best way to guarantee that you won’t be an unhappy trader, is to spend the time developing your own trading philosophy. It should be well researched, including backtesting and chart studies, so you know the risks and the worst case scenario. Your worst case scenarios should be something you can handle, and not something that will cause you dure

Traders that are emotionally calm and approach trading as a business, have better odds of profitability than the thrill seekers and gamblers that come to the market. 1/3 of trading is based on logic, and 2/3 is based on emotions. Your trading system is the needed logic that filters the market’s price action. Your trading plan is your anchor.

As you develop as a trader, your #1 goal should be happiness. The easiest way to be happy in the markets is to be profitable. But even when you lose money, you need to accept that it’s just part of the game, and start looking forward to your next chance to win.

Great traders are profitable because they have become masters at managing uncertainty. They don’t win because they can see the future, they win because they are certain of what they will do, in the present moment, when faced with uncertainty.

Successful trading comes from the process that you adopt for entries, exits and position sizing. Flow with current price action to capture trends, cut losses, and take trades with great risk/reward ratios.

The second part of trading in the now is practicing mindfulness with a focus on identifying your feelings, thoughts, and how they can affect your ability to make the right decisions in entries, exits, and position sizing.

The best way to help yourself control your impulses is by having clearly defined goals and a vision of what you want your future to look like. When you experience an overwhelming desire to do something that could be detrimental to your plan, you can look at it through the filter of whether it’s moving you toward your goals or away from them. This t

Traders are entrepreneurs. They don’t trade for a regular paycheck, but they exchange that uncertainty for the potential of unlimited profits.