One of the hardest truths about trading to implement, is that if you hope to become consistently profitable you’re going to have to think and act like you are, BEFORE you are.
Aspiring traders should follow and mimic the mental traits, attitude, belief systems and trading processes of those successful traders and investors that have walked before them. This seems obvious and sounds relatively easy perhaps, but there’s a reason why so few people actually achieve trading success. You need some insight and help with what you need to actually change and do, if you want to start making money in the markets..
The main reason most people fail at trading is that people generally don’t like to consistently do anything that is somewhat “boring” or “uncomfortable”. Even when it comes to such important things like health and fitness for example, most people know what they SHOULD do, but they knowingly don’t do it, even when they are aware of the consequences.
It is when these “consequences” seem “far off” or “a long time away” that we start to ease up on our dedication to the discipline required to succeed. So, you need to keep these consequences in your mind, so that you begin to place more value into doing what you need to do to achieve what you want.
So, what DO Millionaire Traders Value?
- They value abundance and opportunity
Want to know the fastest way to lose all your money trading? Trade like you’re desperate. Or, if you want to lose your money REALLY fast, trade like you’re desperate and not even know you’re doing it!
What is “trading like you’re desperate”?
Trading like you’re desperate essentially means you are “desperate” to make as much money as you can as fast as you can, and this is what prevents most traders from actually ever making money, ironically. When you do things like trade when your edge isn’t there, or increase your position size beyond what you know you’re comfortable with losing or otherwise deviate from your trading plan, you are trading as if you’re “desperate” to make money. You will have to stop this if you want to think and trade like a millionaire.
Millionaires operate from a mindset of abundance. They don’t feel desperate to make money, and not just because they are millionaires. It’s because they see the endless opportunities in the market and elsewhere in business, so they don’t feel like they’re in a “rush” to take the next thing that comes along. Instead, they feel like they should wait patiently for the most obvious trade setup or perhaps the lower risk opportunity to come along.
Here is one of my favorite quotes that relates to not trading like you’re “desperate”:
I just wait until there is money lying in the corner, and all I have to do is go over there and pick it up. I do nothing in the meantime. Even people who lose money in the market say, “I just lost my money, now I have to do something to make it back.” No, you don’t. You should sit there until you find something. – Jim Rogers
I know it can be difficult and cliche sounding, but honestly, if you want to become a successful trader you’re doing to have to start trading as if you’re already a professional. The habits and mindset of a losing trader (desperate to make money) are NEVER going to translate into consistently making money in the markets. So, even if you have a $200 trading account, you have to trade it as if you are NOT desperate to grow it too fast or you WILL blow it out, quickly.
- Millionaire traders value their performance in the market
One of the biggest distinctions between a successful trader and a losing trader, is that the former values performance whereas the latter primarily values money. When you value your actual trading performance in the market, you start focusing on all the right things and developing the proper trading habits that cause your performance to remain positive. When you value only money, you start to forget about all the things you need to do properly to improve your performance. Things like having a trading plan, being disciplined and not over-trading or risking too much per trade, holding your trades longer, placing your stops further away, etc. You value what you need to do to see your equity curve consistently go up.
You see, it’s impossible to value your trading performance and not also value the proper processes and habits that allow you to see your trading performance improve. But, when you start only valuing the money, you can easily forget that it’s not just about “making money”, it’s about SLOWLY making money over time. Because trying to make “fast money” always results in LOST MONEY.